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Manson Inc. is a small lunchbox-producing firm. There are 14 such firms (including Manson Inc.) in the industry. Each firm is identical; it produces the
Manson Inc. is a small lunchbox-producing firm. There are 14 such firms (including Manson Inc.) in the industry. Each firm is identical; it produces the same product and has the same costs of production. Each firm has the same total cost function, TC = 200 + 50q , where q is the output of an individual firm. The price at which you can sell the lunchboxes is determined by market demand, estimated as P=290 - (1/3)Q, where Q is the sum of all the individual firms producing in this industry.
Choose an output level that maximizes the firm's profit.
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