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A firm operating in a monopolistically competitive market faces a demand curve (function) as given below:
P = 10 - 0.1Q. The firm's total cost curve (function) is: TC = - 10Q + 0.0333Q3 + 130
a. Determine the price and output rate that will allow the firm to maximize profit or minimize losses.
b. Determine (compute) the monopoly power of the firm.
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