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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Modern Principles Microeconomics

ISBN: 9781429239998

2nd Edition

Authors: Tyler Cowen, Alex Tabarrok

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