Essay
Laura's internet services has the following short-run cost curve: 
where q is Laura's output level,K is the number of servers she leases and r is the lease rate of servers.Laura's short-run marginal cost function is: 
Currently,Laura leases 8 servers,the lease rate of servers is $15,and Laura can sell all the output she produces for $500.Find Laura's short-run profit maximizing level of output.Calculate Laura's profits.If the lease rate of internet servers rise to $20,how does Laura's optimal output and profits change?
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