LS1946: Given a firm’s demand function, P = 24 – 0.5Q and the average cost function, AC = Q – 8Q

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Question: Given a firm’s demand function, P = 24 – 0.5Q and the average cost function, AC = Q2 – 8Q
+ 36 + 3/Q, calculate the level of output Q which a) maximizes total revenue b)
maximizes profits


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