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Microeconomic Theory 11th Edition by Walter Nicholson,Christopher Snyder
Edition 11ISBN: 978-1111525538Microeconomic Theory 11th Edition by Walter Nicholson,Christopher Snyder
Edition 11ISBN: 978-1111525538 Exercise 1
John's Lawn Mowing Service is a small business that acts as a price-taker (i.e., MR = P ). The prevailing market price of lawn mowing is $20 per acre. John's costs are given by
where q = the number of acres John chooses to cut a day.
a. How many acres should John choose to cut to maximize profit?
b. Calculate John's maximum daily profit.
c. Graph these results, and label John's supply curve.
where q = the number of acres John chooses to cut a day.
a. How many acres should John choose to cut to maximize profit?
b. Calculate John's maximum daily profit.
c. Graph these results, and label John's supply curve.
Explanation
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Microeconomic Theory 11th Edition by Walter Nicholson,Christopher Snyder
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