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Please show step-by-step detailed procedures. Will rate helpful! Michael is one of many Uher drivers in Toronto. He can only decide how many hours he
Please show step-by-step detailed procedures. Will rate helpful!
Michael is one of many Uher drivers in Toronto. He can only decide how many hours he wants to drive every day, but he cannot inuence the average price (or income} he gets for each hour of driving (which is determined by Uher). Michael's monthly cost of driving for Uher includes gas, maintenance costs, depreciation of his car, insurance, his opportunity cost of time etc, and is given by (30;) = 800 + 4:; + I].I]5qr2 where q is the number of hours he drives for Uher. a) If the average price (or income) is $18fhcur, how many hours should Michael drive for Uber each month to maximize his prots? {3 points) b) Given the price (or income) of $18ihour, what is Michael's (short run) economic prot per month? (2 points) c) What is the minimum price (or income) per hour for Michael so that it is optimal for him in the short run to drive for Uber? (4 points) d) What is the minimum required price in the long run so that it is optimal for Michael to drive for Uber? (4 points)Step by Step Solution
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