Rob Doe just started a ice cream business within a perfectly competitive market. The new business man was told that he would charge a price that is equal to marginal revenue. The market clearing price for ice cream is $20 dollars per scoop. The total cost for producing ice cream is given by: Total cost = q2 + 100q + 500 where q is the number of ice cream produced in a typical day. a. How many ice cream should Rob choose to produce to maximize profit? b. Calculate Rob's maximum daily profit c. Graph these results, and label Rob's supply curve
Rob Doe just started a ice cream business within a perfectly competitive market. The new business man was told that he would charge a price that is equal to marginal revenue. The market clearing price for ice cream is $20 dollars per scoop. The total cost for producing ice cream is given by: Total cost = q2 + 100q + 500 where q is the number of ice cream produced in a typical day. a. How many ice cream should Rob choose to produce to maximize profit? b. Calculate Rob's maximum daily profit c. Graph these results, and label Rob's supply curve
Chapter8: Production And Costs
Section: Chapter Questions
Problem 15QP
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Economics
1. Rob Doe just started a ice cream business within a
Total cost = q2 + 100q + 500 where q is the number of ice cream produced in a typical day.
a. How many ice cream should Rob choose to produce to maximize profit?
b. Calculate Rob's maximum daily profit
c. Graph these results, and label Rob's supply curve
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