Microeconomic Theory - Competitive Behavior

Calculus Level pending

A monopolistic competitive firm has the following marginal revenue(MR) and marginal cost(MC) function as follows:

MR = 100 - 20Q where Q= quantity of units supplied

MC= 20

The aggregate demand for this firm's product/service is given as:

P = 100 - 10Q where P= price and Q=quantity demanded

Question: What are the level of profits associated with this profit maximizing level of output?


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