Suppose company XYZ produces a differentiated commodity. The company has substantial control over the price of the product. The company’s cost function is estimated to be TC = 200 – 20Q + Q2, where Q is the volume per day. The firm also has the following demand equation P = 60 – 2Q, where P represents the price per unit and Q the volume of daily sales. What level of output should management of XYZ produce? a. 30 b. 10 c. 20 d. 15

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