Question
20.A new pizza place, Fredrico's opens in New York City. The average price of a medium pizza in New York is $10 and, because of
20.A new pizza place, Fredrico's opens in New York City. The average price of a medium pizza in New York is $10 and, because of large number of pizza sellers, this price will not be affected by the new entrant in the market. The owner of the Fredrico's estimates that monthly total costs, including a normal profit will be
TC = 1000 + 2Q + 0.01Q2
To maximize total profit, how many pizzas should be produced each month? In the short run, how much economic profit the business will earn each month?
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Law, Business And Society
Authors: Tony McAdams, Kiren Dosanjh Zucker, Kristofer Neslund, Kari Smoker
12th Edition
1259721884, 978-1259721885
