13.1 John's Lawn Moving Service is a small business that acts as a price taker (i.e., MR...
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13.1 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 = .lq 2 + lOq + 50 where q = 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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Related Book For
Microeconomic Theory Basic Principles And Extensions
ISBN: 9780030335938
8th Edition
Authors: Walter Nicholson
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