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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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).
Transcribed Image Text: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).
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