Suppose that Dent Carr's long-run total cost of repairing s cars per week is c(s) = 4s² + 12 for s>0 and c(0)=0 with MC(s) = 8s. If the price he receives for repairing a car is $24, then in the long run, how many cars will he fix per week if he maximizes profits? O 3 04 06 O 12

Suppose that Dent Carr's long-run total cost of repairing s cars per week is c(s) = 4s² + 12 for s>0 and c(0)=0 with MC(s) = 8s. If the price he receives for repairing a car is $24, then in the long run, how many cars will he fix per week if he maximizes profits? O 3 04 06 O 12

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section12.4: Costs In The Short Run And In The Long Run

Problem 4QQ

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Concept explainers

Cost of Production

In economic theory, production costs are the costs incurred by an industrial organization when it engineers a project or provides a service that generates revenue and benefits. Labor costs, raw materials, consumable manufacturing costs, and general overhead sum up, accounting for production costs. Total cost data is calculated by combining total direct costs of materials, labor costs, and total production costs.

Question

Suppose
that Dent Carr's long-run total cost of repairing s cars per week is c(s) = 4s² + 12 for s>0 and c(0)=0 with MC(s) = 8s. If the price he receives for repairing a
car is $24, then in the long run, how many cars will he fix per week if he maximizes profits?
O 3
04
06
O 12

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