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A firm has the following total revenue and total cost schedules:

TR = $2Q.

TC = $4,000 + $1.5Q.

a. What is the break-even level of output? What is the level of profits at sales of 9,000 units?

b. As the result of a major technological breakthrough, the total cost schedule is changed to:

TC = $6,000 + $0.5Q.

What is the break-even level of output? What is the level of profits at sales of 9,000 units?

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