3.7 Beta Laundrys pre-tax cost function is C(q) = 30 + 20q + q2, so its marginal...

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3.7 Beta Laundry’s pre-tax cost function is C(q) = 30 + 20q + q2, so its marginal cost function is MC = 20 + 2q.

a. What quantity maximizes the firm’s profit if the market price is p? How much does it produce if p = 60?

b. If the government imposes a specific tax of t = 2, what quantity maximizes its after-tax profit? Does it operate or shut down? (Hint:

See Solved Problem 8.2.) A

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Microeconomics

ISBN: 9780133456912

7th Edition

Authors: Jeffrey M. Perloff

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Question Posted: Nov 15, 2024 05:00 AM

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3.7 Beta Laundrys pre-tax cost function is C(q) = 30 + 20q + q2, so its marginal...

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Microeconomics

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