Solved

Homer's Boat Manufacturing Cost Function Is: C(q) =

Question 48

Essay

Homer's Boat Manufacturing cost function is: C(q) = Homer's Boat Manufacturing cost function is: C(q) = q<sup>4</sup> + 10,240. The marginal cost function is: MC(q) = q<sup>3</sup>. If Homer can sell all the boats he produces for $1,200, what is his optimal output? Calculate Homer's profit or loss.
q4 + 10,240. The marginal cost function is: MC(q) = Homer's Boat Manufacturing cost function is: C(q) = q<sup>4</sup> + 10,240. The marginal cost function is: MC(q) = q<sup>3</sup>. If Homer can sell all the boats he produces for $1,200, what is his optimal output? Calculate Homer's profit or loss.
q3. If Homer can sell all the boats he produces for $1,200, what is his optimal output? Calculate Homer's profit or loss.

Correct Answer:

verifed

Verified

The profit maximizing output level is wh...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q2: The amount of output that a firm

Q31: Which of the following events does NOT

Q42: The long-run supply curve in a constant-cost

Q44: If a graph of a perfectly competitive

Q49: Assume the market for tortillas is perfectly

Q53: The authors note that the goal of

Q71: In a constant-cost industry, an increase in

Q76: Economic rents are typically counted as:<br>A) accounting

Q128: The market for wheat consists of 500

Q132: That Table 8.1 shows a short-run situation