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A firm’s total cost and marginal cost functions are: TC = 10
Q2 + 2Q-2 ; MC = 20Q+2

Assume that the market price is 42 and that the marginal revenue
(MR) is also 42 (It is constant at all output levels)

1. The firm is currently prodccuing 1 unites of output. what are
profits or losses for this firm?
2. Are they maximizing profits?Why?
3. If you answer to part 2 was No, what would be maximum
profits?

Please show necessary calculations.