4. A costume rent service, 'Good Look,' is a small business operating in the short run...

 

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4. A costume rent service, 'Good Look,' is a small business operating in the short run in a perfectly competitive market. The business must pay as much as IDR200 thousand a month for electricity and water, and its variable cost is expressed as a function of the number of costumes rented (q): VC(q) = 5q +0.1q2 (in thousands of rupiah). Currently, the rent price of a costume is IDR40 thousand/costume. (25 points) a. What is the optimal number of costumes to be rented in a month? Calculate the maximum profit that 'Good Look' can get monthly. (10 points) b. At what minimum price is Good Look willing to provide its services? Show in a diagram. (5 points) c. Based on the answers in part (a), will any new costume rent services be available in the market? (5 points) d. What will happen to the market in the long run, and how will Good Look and others perform at the time? (5 points) 4. A costume rent service, 'Good Look,' is a small business operating in the short run in a perfectly competitive market. The business must pay as much as IDR200 thousand a month for electricity and water, and its variable cost is expressed as a function of the number of costumes rented (q): VC(q) = 5q +0.1q2 (in thousands of rupiah). Currently, the rent price of a costume is IDR40 thousand/costume. (25 points) a. What is the optimal number of costumes to be rented in a month? Calculate the maximum profit that 'Good Look' can get monthly. (10 points) b. At what minimum price is Good Look willing to provide its services? Show in a diagram. (5 points) c. Based on the answers in part (a), will any new costume rent services be available in the market? (5 points) d. What will happen to the market in the long run, and how will Good Look and others perform at the time? (5 points)