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Wayar Bagus Bhd (WYB) supplies standard electrical wiring to the construction and renovator markets. Like the output of its competitors, WYB's household BGS-7 wire must
Wayar Bagus Bhd (WYB) supplies standard electrical wiring to the construction and renovator markets. Like the output of its competitors, WYB's household BGS-7 wire must meet strict governmental specifications. As a result, the BGS-7 wire supply industry can be regarded as perfectly competitive. Total cost relations for WYB is: TC = $3,600 + $5Q + $0.0102 where Q is hundreds of feet of wire produced. 1. Compute WYB's optimal output and profits if BGS-7 wire prices are stable at $20. 2. Calculate WYB's optimal output and profits if BGS-7 wire prices rise to $25 each
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