Question: A buyer with income M has utility function U(q,m) = m + q 2 , where q is the quantity of a good sold by

A buyer with income M has utility function U(q,m) = m + q2, where q is the quantity of a good sold by the seller and m is income remaining after purchasing the good. The seller, who has zero costs, offers a take-it-or-leave-it quantity q for total payment P. What is the seller's profit-maximising offer?

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