Question
If the pre-tax cost function for John's Shoe Repair is C(q) = 100 + l0q - q 2 + (1/3)q 3 , and it faces
If the pre-tax cost function for John's Shoe Repair is C(q) = 100 + l0q - q2 + (1/3)q3, and it faces a specific tax of t = 10, what condition determines the profit-maximizing output if the market price is p? Can you solve for a single, profit-maximizing q in terms of p?
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International Economics
Authors: Dominick Salvatore
11th edition
978-1118177938, 1118177932, 1119915732, 978-1118476017, 1118476018, 978-1119915737
