1.11. Given the cost function for Simon, a housepainter in a competitive local market, below, answer the...
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1.11. Given the cost function for Simon, a housepainter in a competitive local market, below, answer the questions that follow. (You may want to calculate average cost.)
Number of Rooms Painted per Week 0
2 3
4 5
6 Total Cost
$100
$120
$125
$145
$200
$300
$460 What is the minimum price per room at which Simon would be earning positive economic profit? At prices below this price, what will Simon's long run plan be?
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Related Book For
Modern Principles Microeconomics
ISBN: 9781429239998
2nd Edition
Authors: Tyler Cowen, Alex Tabarrok
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