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You are the manager of a monopolistically competitive firm, and your demand and cost functions are given by Q = 36 – 4P and C(Q) = 124 – 16Q + Q2.
a. Find the inverse demand function for your firm’s product.
b. Determine the profit-maximizing price and level of production.
Instruction: Price should be rounded to the nearest penny (two decimal places).
c. Calculate your firm’s maximum profits.
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