11.19.1 John's Lawn Moving Service is a small business that acts as a price taker (i.e., MR...

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11.19.1 John's Lawn Moving Service is a small business that acts as a price taker (i.e., MR = P). The prevailing market price of lawn mowing is $20 per acre. John's costs are given by total cost 0.1g2+10g+50, where the number of acres John chooses to cut a day.

a. How many acres should John choose to cut in order to maximize profit?

b. Calculate John's maximum daily profit.

c. Graph these results and label John's supply curve.

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Microeconomic Theory Basic Principles And Extensions

ISBN: 9780324585377

10th Edition

Authors: Walter Nicholson, Christopher M. Snyder

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