Essay
Lelu runs a firm that sells multipasses to intergalactic cruises.Her short-run cost function is given by
C(q)= q² + 25q + 144
a.If the market price is $75/pass,how many units will Lelu produce?
b.At what price will Lelu earn zero profits?
c.If the price is below the level you found in b.,will Lelu shut down? If so,explain.If not,below what price will she shut down?
Correct Answer:
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a.Profit = 75q - C(q)= 75q - q² - 25q - ...View Answer
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