Suppose you are the manager of a watchmaking firm operating in a competitive market. Your cost of production is giver by C=300+2q², where q is the level of output and C is total cost. (The marginal cost of production, MC(q), is 4q; the fixed cost, FC, is $300). If the price of a watch is $80, how many watches should ypu produce to maximize profits? You should produce watches. (Enter your response as an integer.)

Suppose you are the manager of a watchmaking firm operating in a competitive market. Your cost of production is giver by C=300+2q², where q is the level of output and C is total cost. (The marginal cost of production, MC(q), is 4q; the fixed cost, FC, is $300). If the price of a watch is $80, how many watches should ypu produce to maximize profits? You should produce watches. (Enter your response as an integer.)

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter7: Production, Inputs, And Cost: Building Blocks For Supply Analysis

Section: Chapter Questions

Problem 1DQ

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