Question
3. a. Barney's snow removal service is a profit-maximizing, competitive firm. Barney clears driveways for $10 each. His total cost each day is $250, and
3. a. Barney's snow removal service is a profit-maximizing, competitive firm. Barney clears driveways for $10 each. His total cost each day is $250, and half of his total costs are fixed. If Barney clears 20 driveways a day, should he continue to operate or shutdown? If this situation persist into the long run, will Barney stay in the market? (4 points)
b. Suppose that Comcast is the only provider of cable service in the city of Baytown, Texas. The following graph shows the monthly demand for cable services in Baytown and Comcast's marginal revenue and marginal cost curves. Use the graph to answer the following questions:
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