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Despero Inc

Accounting

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Despero Inc. has a production cost function described by C(q)=250+40/q+20q, and an associated marginal cost function of MC(q)=20-40/q^2 . Currently, the price of the Despero product is $10 per unit. How much Despero Inc. should produce if it chooses to produce?

B.Should Despero remain in the market in the long term at that price? What about the short term?