Question
Cory has opened a ride-sharing business, and it has become fairly complex as she now owns half of the vehicles herself while her drivers own
Cory has opened a ride-sharing business, and it has become fairly complex as she now owns half of the vehicles herself while her drivers own the rest. Cory's costs can be represented by the function c(y)=y32.00y2+18.00y+39.00, where y represents the number of rides.
Part 1 ]At what positive number of rides provided will Cory's average variable cost (AVC) be equal to her marginal cost (MC)? (Give your answer to two decimals.)
Part 2 What is the lowest price per ride at which Cory would ever operate? $ (Give your answer to two decimals.)
Part 3 See Hint Suppose that the price per ride drops to the exact price you found in Part 2 and that Cory remains in business in the short run. Remember that total profits are revenue minus costs. They can be divided by output to determine profits per ride. What is Cory's profit per ride at that price? $ (Give your answer to two decimals.)
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