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Q#1: The demand function of a good is given by P+ 2Q = 20 and total average Cost function AC=Q?- 8Q+ 20 + 2/Q 1) Find the level of output which maximizes total profit. (ii) Find the maximum profit.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter21: Production And Costs

Section21.4: Costs Of Production: Total, Average, Marginal

Problem 2ST

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Q#1: The demand function of a good is given by P+ 2Q = 20 and total average Cost function
AC =Q?- 8Q +20 + 2/Q
1) Find the level of output which maximizes total profit.
(ii) Find the maximum profit.

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