Question
Beth's Lawn Mowing Service is a small business that acts as a price taker (MR = P). The prevailing market price of lawn mowing is
Beth's Lawn Mowing Service is a small business that acts as a price taker (MR = P). The
prevailing market price of lawn mowing is $20 per acre. Although Beth can use the family
mower for free, she has other costs given by
Total cost = 0.1q2 + 10q + 50
Marginal cost = 0.2q + 10
Where, q = the number of acres Beth chooses to mow in a week.
a) How many acres should Beth choose to mow in order to maximize profit?
answer = q= 50
b) Calculate Beth's maximum weekly profit.
answer= 200
c) Graph these results and label Beth's supply curve.
I am not sure how the graph will be plotted
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