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Question: 12 at the profit maximizing output calculate beths profit a...

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12. At the profit maximizing output, calculate Beths profit: a. $100 b. $200 c. -$2.50 d. $40 5 13. Now suppose Beths greedy father charges her to use the family lawn mower-$100 per week. Everything else is unchanged. How will this change affect the optimal number of acres to mow? a. b. c. Quantity will increase Quantity will decrease Quantity will remain unchanged 14. Suppose instead that Beths father requires her to pay 50 percent of her weekly profits as a mower charge. How will this affect Beths profit maximizing decision? a. Quantity will increase b. Quantity will decrease c. Quantity will remain unchanged 15. Suppose a firm has the following demand curve: q - 60-2P. Find the total revenue curve for the firm (hint, express TR as a function of q) a. TR 30-/q b. TR-60-q c. TR-30q- q d. TR 60q-2q e. TR-30- q 16. Suppose that MR 30 -q and MC- 0.2q. What level of output should this firm choose to maximize profits? a. q 10 b. q 15 c. q 20 d. q 25 e. q 30
Use the following information to answer questions 10-14: Beths Lawn Mowing Service is a small business that acts like 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+10q+50 Marginal Cost 0.2q+ 10 Where q the number of acres Beth chooses to mow in a week.
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