Question
Beths Lawn Mowing Service acts as a monopoly. The prevailing market price equation is given by P = 20 - 0.2q where q represents one
Beth’s Lawn Mowing Service acts as a monopoly. The prevailing market price equation is given by P = 20 - 0.2q where q represents one acre of lawn. Cost equations are as follows:
Total Cost = 0.1q2 + 10q + 50
Marginal Cost = 0.2q + 10
a) How many acres should Beth choose to mow in order to maximize profits?
b) Calculate Beth’s maximum weekly profits/losses.
Step by Step Solution
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Step: 1
a To maximize profits Beth should choose the quantity of acres to mow where marginal cost MC equals ...
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Physics Principles with Applications
Authors: Douglas C. Giancoli
7th edition
978-0321869111, 321625927, 9780321733627, 321869117, 9780321625922, 321733622, 978-0321762429
