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Afirms marginal revenue of MR = 200-24, and marginal cost of MC = 50. The profit-maximizing level of output is O 50 O 75 200
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Answer. (b) 75

Explanation: Profit maximising output occurs where marginal cost is equal to marginal revenue. So 200-2q=50. So 200-50=2q. So 150=2q. And q=150/2 = 75. Thus the profit maximising quantity is 75 units.

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