Suppose you are the manager of a watchmaking firm operating in a competitive market. Your cost of given by C = 400+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 $400) If the price of a watch is $120, how many watches should you produce to maximize profits?

Suppose you are the manager of a watchmaking firm operating in a competitive market. Your cost of given by C = 400+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 $400) If the price of a watch is $120, how many watches should you produce to maximize profits?

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter21: Production And Costs

Section: Chapter Questions

Problem 17QP

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