Essay
The squishy industry is competitive and the market price is $0.80.Apu's long-run cost function is: 
where r is the price Apu pays to lease a squishy machine and q is squishy output.The long-run marginal cost curve is: 
What is Apu's optimal output if the price Apu pays to lease a squishy machine is $1.10? Suppose the lease price of squishy machines falls by $0.55.What happens to Apu's optimal output if the market price for a squishy remains at $0.80? Did profits increase for Apu when the lease rate of squishy machines fell?
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