Exhibit 8-15 Short-run cost curves for E-Z Care lawn mowing company
-In Exhibit 8-15, if the market price of mowing lawns is $16 per lawn, then E-Z-Care will earn the biggest profit by mowing:

Question

Exhibit 8-15 Short-run cost curves for E-Z Care lawn mowing company 
-In Exhibit 8-15, if the market price of mowing lawns is $16 per lawn, then E-Z-Care will earn the biggest profit by mowing:

Quizplus · Accepted Answer

At a market price of $16 per lawn, the company's marginal revenue would also be $16, which intersects with the marginal cost curve at a quantity of 8 lawns. This means that the company should mow 8 lawns per day to maximize profits. Any quantity below or above 8 lawns would result in lower profits.

Exhibit 8-15 Short-Run Cost Curves for E-Z Care Lawn Mowing