Beth’s Lawn Mowing Service acts as a monopoly.  The prevailing market price equation is given by P = 20 - 0.2q where q represents one acre of lawn. Cost equations are as follows: 

Total Cost = 0.1q² + 10q + 50

Marginal Cost = 0.2q + 10

a)      How many acres should Beth choose to mow in order to maximize profits?
b)      Calculate Beth’s maximum weekly profits/losses.

Answer rating: 100% (QA)

a To maximize profits Beth should choose the quantity of acres to mow where marginal cost MC equals ... View the full answer