Question
Lily, Lucy and Sara live together in a house. The respective demand curves for weekly hours of cleaning are given by: Lily P = 32
Lily, Lucy and Sara live together in a house. The respective demand curves for weekly hours of cleaning are given by:
Lily P = 32 - 0.7Q
Lucy P = 15 - 0.7Q
Sara P = 42.4 - 0.7Q
The marginal cost of supply cleaning is 24.2$ / hour. Suppose Lily, Lucy and Sara had to individually decide how many hours of cleaning to pay for. How many hours of cleaning will be purchased in this case?
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Managerial Economics and Organizational Architecture
Authors: James Brickley, Clifford W. Smith Jr., Jerold Zimmerman
6th edition
73523143, 73523149, 978-0073523149
