Suppose consumers see coffee as an undifferentiated good and that there are hundreds of coffee shops in the market. The market price of a cup of coffee is $3. Carly’s coffee shop has a daily short-run total cost given by ?? = 5 + 1 4 ? 2 . The associated marginal cost curve is ?? = 1 2 ?. How many cups of coffee should Carly make a day if she wants to maximize profits? 3. Suppose consumers see coffee as an undifferentiated good and that there are hundredsof coffee shops in the market. The market price of a cup of coffee is $3. Carly's coffee shophas a daily short-run total cost given by TC5 +Q². The associated marginal cost%3D4curve is MCQ. How many cups of coffee should Carly make a day if she wants tomaximize profits?

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Answered: Suppose consumers see coffee as an…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose consumers see coffee as an undifferentiated good and that there are hundreds of coffee shops in the market. The market price of a cup of coffee is $3. Carly’s coffee shop has a daily short-run total cost given by ?? = 5 + 1 4 ? 2 . The associated marginal cost curve is ?? = 1 2 ?. How many cups of coffee should Carly make a day if she wants to maximize profits?

3. Suppose consumers see coffee as an undifferentiated good and that there are hundreds
of coffee shops in the market. The market price of a cup of coffee is $3. Carly's coffee shop
has a daily short-run total cost given by TC
5 +Q². The associated marginal cost
%3D
4
curve is MC
Q. How many cups of coffee should Carly make a day if she wants to
maximize profits?

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