What is the optimal number of cars to wash per hour

Assignment Help Microeconomics

Reference no: EM13700920

Suppose that you own a car wash and that its total cost function is: C= 20 + 2Q + .3Q^2, where C = total cost (in dollars) per hour and Q is the number of cars washed per hour. You receive 5 dollars for each car washed.

A. What is the optimal number of cars to wash per hour?

B. What is the maximum profit that you can obtain?

C. Derive the firms’ short run supply curve?

D. If there are 6 identical firms, what is the industry supply?

Reference no: EM13700920

Questions Cloud

Scale are increasing at low output levels and constant : Can the cobb-douglas production function be used to portray a production process in which returns to scale are increasing at low output levels and constant or decreasing at high output levels?

What is safety factor of part under this design arrangement : Assume that the following data are known for a mechanical part under design: Load Stress is normally distributed with? s=15,000 psi and?s=4,000 psi Strength of part is also normally distributed with ?ST=30,000 psi and ?ST=3,000 psi What is the safety..

Derive the firms short run supply curve : Suppose you own a car wash and that its total cost function is C = 20 + 2Q + .3Q^2 where C = total cost in dollars per hour and Q is the number of cars washsed per hour. You recieve 5 dollars for each car washed.

Short-run average and marginal costs of an auto dealership : What effect, if any, would each of the following have on the short-run average (ATC, AFC, AVC) and marginal costs of an auto dealership:

What is the optimal number of cars to wash per hour : Suppose that you own a car wash and that its total cost function is: C= 20 + 2Q + .3Q^2, where C = total cost (in dollars) per hour and Q is the number of cars washed per hour. You receive 5 dollars for each car washed. What is the optimal number of ..

Considering lowering price of its min vans to promote sales : A car dealership is considering lowering the price of its min vans to promote sales. However, it worries that this will reduce sales of it station wagon autos. It finds the cross product of demand to be 1.5. Are its concerns legitimate? Explain.

Free-market republican argues against the pigouvian tax : A free-market republican argues against the Pigouvian tax by pointing out that the conditions necessary for the Coase Theorem to produce an efficient equilibrium are present in this situation. Assuming that the republican is correct, describe two met..

Government have a bad reputation of being inefficient : Why does the government have a bad reputation of being inefficient? And if it is inefficient in some areas and not others, does that mean they should privatize the inefficient responsibilities?

High-ability and low-ability : Suppose there are two types of workers: high-ability and low-ability. Workers know their own abilities but firms do not. A high school diploma costs a high-ability person $10,000 and costs a low-ability person $15,000.

User Account

All Pages