View the step-by-step solution to:

P = $130 - $0.000125Q MR - $130 - 0.00025 Fixed development cost = $600,000 Marginal costs are $63 per unit.

P = $130 - $0.000125Q
MR - $130 - 0.00025
Fixed development cost = $600,000
Marginal costs are $63 per unit.
Calculate output, price, total revenue and total profit at the revenue maximizing activity level and then at the profit maximizing level (present each with relevant diagrams).

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