Question: If the pre tax cost function for John s Shoe Repair is
If the pre-tax cost function for John’s Shoe Repair is C(q) = 100 + 10q – q2 + 1/3 q3, and it faces a specific tax of t = 10, what is its profit-maximizing condition if the market price is p? Can you solve for a single, profit- maximizing q in terms of p?
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