Robin owns a horse stable and gives riding lessons for children at Pony Camp. His business operates in a competitive industry. Robin gives riding lessons to 20 children per month. His monthly total revenue is $4,000. The marginal cost of the 20th child $250. In order to maximize profits, Robin should give riding lessons to more than 20 children per month. give riding lessons to fewer than 20 children per month. continue to give riding lessons to 20 children per month. We do not have enough information to answer the question.

Robin owns a horse stable and gives riding lessons for children at Pony Camp. His business operates in a competitive industry. Robin gives riding lessons to 20 children per month. His monthly total revenue is $4,000. The marginal cost of the 20th child $250. In order to maximize profits, Robin should give riding lessons to more than 20 children per month. give riding lessons to fewer than 20 children per month. continue to give riding lessons to 20 children per month. We do not have enough information to answer the question.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter10: Strategy: The Quest To Keep Profit From Eroding

Section: Chapter Questions

Problem 10.2IP

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Robin owns a horse stables and riding academy and gives riding lessons for children at “pony camp.” Her businessoperates in a competitive industry. Robin gives riding lessons to 20 children per month. Her monthly total revenue is$4,000. The marginal cost of pony camp is $250 per child. In order to maximize profits, Robin shoulda. give riding lessons to more than 20 children per month.b. give riding lessons to fewer than 20 children per month.c. continue to give riding lessons to 20 children per month.d. We do not have enough information to answer the question.
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