If the pre-tax cost function for Johns Shoe Repair is C(q) = 100 + 10q - q
Question:
If the pre-tax cost function for John’s Shoe Repair is C(q) = 100 + 10q - q2 + 1/3q3, and it faces a specific tax of t = 10, what condition determines the profit-maximizing output 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 10q q 2 13q 3 10q The firm will maximize ...View the full answer
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