The cost function for Acme Laundry is C( q) = 10 + 10q + q2, so its marginal cost function is MC = 10 + 2q, where q is tons of laundry cleaned. Derive the firmâ€™s average cost and average variable cost curves. What q should the firm choose so as to maximize its profit if the market price is p? How much does it produce if the competitive market price is p = 50?
Answer to relevant QuestionsBeta Laundryâ€™s cost function is C(q) = 30 + 20q + q2.a. What quantity maximizes the firmâ€™s profit if the market price is p? How much does it produce if p = 60? b. If the government imposes a specific tax of t = 2, what ...What is the effect on the short-run equilibrium of a specific subsidy of s per unit that is given to all n firms in a market?In 2009, the voters of Oakland, California, passed a measure to tax medical cannabis (marijuana), effectively legalizing it. In 2010, the City Council adopted regulations permitting industrial-scale marijuana farms with no ...Give an answer to the Managerial Problem for the short run rather than for the long run.Show that after a shift in the demand curve, a monopolyâ€™s price may remain constant but its output may rise.
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