Wired is a small manufacturer of USB-C charging cables, operating in a perfectly competitive market. Due to the large number of charging cable producers and the homogeneous nature of charging cables, Wired is a price taker. The current market price for USB-C charging cables is $8 per unit, and Wired's cost structure is described by the equations: FC = $5000 per month, VC = 0.04q² + 4q, and MC = 0.08q + 4, where q is the firm's quantity of USB-C charging cables per month. Wired's profit at its profit maximizing quantity is A dollars (up to two decimal places).

Wired is a small manufacturer of USB-C charging cables, operating in a perfectly competitive market. Due to the large number of charging cable producers and the homogeneous nature of charging cables, Wired is a price taker. The current market price for USB-C charging cables is $8 per unit, and Wired's cost structure is described by the equations: FC = $5000 per month, VC = 0.04q² + 4q, and MC = 0.08q + 4, where q is the firm's quantity of USB-C charging cables per month. Wired's profit at its profit maximizing quantity is A dollars (up to two decimal places).

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter11: Price And Output Determination: Monopoly And Dominant Firms

Section: Chapter Questions

Problem 5E

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