The cost function for Acme Laundry is C(q) = 10 + 10q + q 2 , where

Question:

The cost function for Acme Laundry is C(q) = 10 + 10q + q², where q is tons of laundry cleaned. What q should the firm choose to maximize its profit if the market price is p? How much does it produce if p = 50?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Microeconomics Theory And Applications With Calculus

ISBN: 978-0134167381

4th Edition

Authors: Jeffrey M. Perloff

See More Books

Question Posted: Jul 11, 2018 07:08 AM

See More Questions

Returning to the gumball producer in Problem, let us look at the possibility that producing these delectable treats does not necessarily experience constant returns to scale. a. In Problem, we showed...
You manage a plant that mass-produces engines by teams of workers using assembly machines. The technology is summarized by the production function q = 5 KL, where q is the number of engines per week,...
Fixed amount of Land for Oil Drilling: Suppose that your oil company is part of a competitive industry and is using three rather than two inputslabor , capital k and land L to produce barrels of...
8. Describe each of the following types of isomerism (i) geometrical isomerism (2 marks) (ii) solavate isomerism (2 marks) (iii) coordination isomerism (2 amrks)
Refer to the information for Charger Battery above. Charger Battery issued $200,000 of 11%, 7-year bonds on January 1, 2020, for $220,132. Interest is paid annually on December 31. The market rate of...
What is an analytic flowchart? What is an applications control matrix?
Understand global sourcing strategies and supply-chain management. 1239
1. What are some key differences between the JetBlue and West Jet software implementations? 2. What are the advantages and disadvantages of communicating a major project in advance? 3. What are the...
Please answer both. Thank you. Division A of Trenton, Inc. makes a component that sells externally for $160. Each unit of the component has $45 of variable cost and $20 of allocated fixed costs....
You just began a position as a financial accountant at Peyton Approved. In this role, your first task is to prepare the companys financials for the year-end audit. Additionally, the company is...
A marginal cost curve may be U-shaped. As a result, the MC curve may hit the firms demand curve or price line at two output levels. Which is the profit maximizing output? Why?
The government imposes a specific tax of t = 2 on laundry. Acme Laundrys pre-tax cost function is C(q) = 10 + 10q + q 2 . How much should the firm produce to maximize its after-tax profit if the...
What does causal research seek to achieve?
PP Company purchases a material that is then processed to yield three chemicals: anarol, estyl, and betryl.In June, PPC purchased 10,000 gallons of the material at a cost of $250,000, and the company...
Suppose Boyson Inc. free cash flow for the next year is $ 1 5 0 , 0 0 0 and the FCF is expected to grow a concert rate of 6 . 5 % if WACC is 1 2 . 5 % what is the market value of the firm?
An eight lane urban freeway (four lanes in each direction) is on rolling terrain and has 11-ft lanes with a 4-ft right-side shoulder. The interchange density is 1.25 per mile. The base free-flow...
For the following business events, please indicate the increase (+) or decrease (-) on the following income statement and balance sheet categories. If there is no effect, leave the box blank. If...
4. Change the magnet to the original orientation and drag through the coil. a. What happens to the voltage and light bulb as the North Pole moves through the coil? b. What happens to the voltage and...
The serum cholesterol levels of children aged 12 to 14 years follows a normal distribution with mean = 162 mg/dl and standard deviation = 28 mg/dl. In a population of 1000 of these children, how...
An Atomic Energy Commission nuclear facility was established in Hanford, Washington, in 1943. Over the years, a significant amount of strontium 90 and cesium 137 leaked into the Columbia River. In a...
If a specific subsidy (negative tax) of s is given to only one competitive firm, how should that firm change its output level to maximize its profit, and how does its maximum profit change? Use a...
If a specific subsidy (negative tax) of s is given to only one competitive firm, how should that firm change its output level to maximize its profit, and how does its maximum profit change? Use a...
Fierce storms in October 2004 caused TomatoFest Organic Heirlooms Farm to end its tomato harvest two weeks early. According to Gary Ibsen, a partner in this small business (Carolyn Said, Tomatoes in...
Your company produces a health magazine. Its sales data for 1 - year subscriptions are as follows: Year of Operation Subscriptions Sold % Expired at Year End 2 0 2 0 $ 3 0 0 , 0 0 0 5 2 0 2 1 $ 6 4 7...
Problem 3 - 2 0 ( Static ) Calculate profitability and liquidity measures LO 3 - 3 , 3 - 4 , 3 - 6 Presented here are the comparative balance sheets of Hames Incorporated at December 3 1 , 2 0 2 3...
3 Required information [The following information applies to the questions displayed below) John and Sandy Ferguson got married eight years ago and have a seven-year-old daughter. Samantha. In 2020,...

The cost function for Acme Laundry is C(q) = 10 + 10q + q 2 , where

Question:

Step by Step Answer:

The firms profit is To find the profitmaximizing output level tak...View the full answer

Microeconomics Theory And Applications With Calculus

Students also viewed these Business questions