If the pre-tax cost function for John's Shoe Repair is: C(q)=200+20q-2q2+0.333q3 and it faces a specific...

Question

Question

If the pre-tax cost function for John's Shoe Repair is:

C(q)=200+20q-2q²+0.333q³

and it faces a specific tax of

τ=$20,

what is the profit-maximizing condition if the market price is p? Can you solve for a single, profit-maximizing q in terms of p?

The profit-maximizing quantity in terms of p

q=

Answer 1

Answer #1

a at Eqm π Maxn P=MC Mc= 20-49 +.333 (3) q² +20. 80 P = 40-49 + .999q2 And Now P-40= .9999² -4q. R40 = 1.9999 - 28.99919.2_+(

Answer 2

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If the​ pre-tax cost function for​ John's Shoe Repair is: C(q)=200+20q-2q2+0.333q3 and it faces a specific...