Homework Answers
Anser
The firm produces at MC=P
MC is a change in the total cost and found by differentiation of the total cost function with respect to quantity.
MC=P
0.08q=56
q=700
TR=p*q=56*700
=39200
Profit=TR-TC=39200-29600=9600
The firm produces $700 units and will earn $9600 profit.
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