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9.13. Ron's Window Washing Service is a small business that operates in the perfectly competitive residential window washing industry in Evanston, Illinois. The short-run total
9.13. Ron's Window Washing Service is a small business that operates in the perfectly competitive residential window washing industry in Evanston, Illinois. The short-run total cost of production is STC(Q) = 40+ 100 + 0.10', where @ is the number of windows washed per day. The corresponding short-run marginal cost function is SMC(Q) = 10 + 0.20. The prevailing market price is $20 per window. a) How many windows should Ron wash to maximize profit? b) What is Ron's maximum daily profit? c) Graph SMC, SAC, and the profit-maximizing quantity. On this graph, indicate the maximum daily profit. d) What is Ron's short-run supply curve, assuming that all of the $40 per day fixed costs are sunk? e) What is Ron's short-run supply curve, assuming that if he produces zero output, he can rent or sell his fixed assets and therefore avoid all his fixed costs
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