If the pre-tax cost function for Johns Shoe Repair is C(q) = 100 + 10q q2
Question:
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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The aftertax cost function is C 100 10 q q 2 13 q 3 10 q The firm will maximize ...View the full answer
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Related Book For 
Managerial Economics and Strategy
ISBN: 978-0321566447
1st edition
Authors: Jeffrey M. Perloff, James A. Brander
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