Question: Use the cost and demand functions in Exercise 5 to calculate the following: a. Determine the marginal revenue and marginal cost functions. b. Show that,
a. Determine the marginal revenue and marginal cost functions.
b. Show that, at the profit-maximizing output level determined in part (b) of the previous exercise, marginal revenue equals marginal cost and illustrates the economic principle that profits are maximized at the output level where marginal revenue equals marginal cost.
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