Suppose a firm’s price function is P = 120 - 0.5Q and its cost equation is C = 420 + 60Q + Q^2. a. Find the firm’s optimal quantity, price, and profit by using the profit and marginal profit equations and by setting MR = MC. b. Suppose instead that the firm can sell any and all its output at the fixed market price P = 120. Find the firm’s optimal output.
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