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1. A firm operates in a perfectly competitive industry. Suppose it has a short run total cost function given by TC= 12000 +0.002q^2. If the market price is 12, what is the firm's profit-maximizing quantity?

2. A firm operates in a perfectly competitive industry. Continue to suppose it has a short run total cost function given by TC= 12000 +0.002q^2. If the market price is 12, what is the highest profit the firm can earn?

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