The squishy industry is competitive and the market price is $0.80. Apu's long-run cost function is: where r is the price Apu pays to lease a squishy machine and q is squishy output. The long-run marginal cost curve is: What is Apu's optimal output if the price Apu pays to lease a squishy machine is $1.10? Suppose the lease price of squishy machines falls by $0.55. What happens to Apu's optimal output if the market price for a squishy remains at $0.80? Did profits increase for Apu when the lease rate of squishy machines fell?

Question

The squishy industry is competitive and the market price is $0.80. Apu's long-run cost function is:  where r is the price Apu pays to lease a squishy machine and q is squishy output. The long-run marginal cost curve is:  What is Apu's optimal output if the price Apu pays to lease a squishy machine is $1.10? Suppose the lease price of squishy machines falls by $0.55. What happens to Apu's optimal output if the market price for a squishy remains at $0.80? Did profits increase for Apu when the lease rate of squishy machines fell?

Quizplus · Accepted Answer

The Answer of The squishy industry is competitive and the market price is $0.80. Apu's long-run cost function is:  where r is the price Apu pays to lease a squishy machine and q is squishy output. The long-run marginal cost curve is:  What is Apu's optimal output if the price Apu pays to lease a squishy machine is $1.10? Suppose the lease price of squishy machines falls by $0.55. What happens to Apu's optimal output if the market price for a squishy remains at $0.80? Did profits increase for Apu when the lease rate of squishy machines fell?

The Squishy Industry Is Competitive and the Market Price Is