Lisa’s Lawn Company (LLC) is a lawn-mowing business in a perfectly competitive market for lawn-mowing services. The following table sets out Lisa’s costs. Quantity (Lawns per hour Total Cost (dollars per lawn) 0 $30 1 40 2 55 3 75 4 100 5 130 6 165 If the market price is $30 per lawn, how many lawns per hour does Lisa’s LLC mow? If the market price is $30 per lawn, what is Lisa’s profit in the short run? If the market price falls to $20 per lawn, how many lawns per hour does Lisa’s LLC mow?
Lisa’s Lawn Company (LLC) is a lawn-mowing business in a perfectly competitive market for lawn-mowing services. The following table sets out Lisa’s costs. Quantity (Lawns per hour Total Cost (dollars per lawn) 0 $30 1 40 2 55 3 75 4 100 5 130 6 165 If the market price is $30 per lawn, how many lawns per hour does Lisa’s LLC mow? If the market price is $30 per lawn, what is Lisa’s profit in the short run? If the market price falls to $20 per lawn, how many lawns per hour does Lisa’s LLC mow?
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter14: Firms In Competitive Markets
Section: Chapter Questions
Problem 10PA
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- Lisa’s Lawn Company (LLC) is a lawn-mowing business in a
perfectly competitive market for lawn-mowing services. The following table sets out Lisa’s costs.
Quantity (Lawns per hour | Total Cost (dollars per lawn) |
0 | $30 |
1 | 40 |
2 | 55 |
3 | 75 |
4 | 100 |
5 | 130 |
6 | 165 |
- If the market price is $30 per lawn, how many lawns per hour does Lisa’s LLC mow?
- If the market price is $30 per lawn, what is Lisa’s profit in the short run?
- If the market price falls to $20 per lawn, how many lawns per hour does Lisa’s LLC mow?
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