How much will beths greedy father get

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Reference no: EM13203844

Beth's Lawn Mowing Service is a small business that acts as a price taker (MR = P). The prevailing
market price of lawn mowing is $20 per acre. Although Beth can use the family mower for free, she has other costs given by
Total cost = 0.1q^2 + 10q + 50
Marginal cost = 0.2q + 10
where q = the number of acres Beth chooses to mow in a week.
Suppose Beth's greedy father decides to charge for the use of the family lawn mower.

If Beth's greedy father imposes a charge of $2 per acre for use of the family mower, how will this affect Beth's marginal cost function? How will it affect her profit-maximizing decision? What will her profits be now? How much will Beth's greedy father get?

Reference no: EM13203844

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