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OpenStudy (anonymous):
Suppose that a firm producing the good x faces the demand p=100-2x and its cost function is given by C=20+4x. How much quantity of good x does this firm have to produce in order maximise its profit? Hint: The profit function can be written as : Profit= Revenue - Cost = px-C = (100-2x)x - (20+4x). What is the value of x?
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