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Unformatted text preview: $95.75 II. TO MAXIMIZE PROFITS, SET MR = MC, SOLVE FOR Q* MR = MC 170  40Q = 38 40Q = 132 Q* = 3.3 Solve for P*: P = 170  20 (3.3) = $104 Solve for TR: TR = P x Q = $104 x 3.3 = $343.20 Solve for TC: TC = 100 + 38 (3.3) = $225.40 Solve for = $343.2  225.4 = $117.80 III. TO MAXIMIZE PROFITS: SET MP = 0, SOLVE FOR Q* = TR  TC = (170 Q  20 Q 2 )  ( 100 + 38Q) = 170 Q  20 Q 2 100  38Q = 100 + 132 Q  20 Q 2 MP = 132  40Q 0 = 132  40Q 40Q = 132 Q* = 3.3...
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This note was uploaded on 11/18/2011 for the course ECON 300 taught by Professor Gang during the Fall '06 term at Rutgers.
 Fall '06
 Gang

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