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Your company just spent $5.0 million on a state-of-the-art production facility. As a result, the marginal cost of producing t

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Answer #1

Profit maximising level of output is where price equals marginal cost

So at a price level of $60 ,

60 = 20 + 0.0001q

q = 400,000 units

Similarly , when the price falls to $25 per unit , company will produce

25 = 20 + 0.0001q

q = 50,000 units

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