The cost of producing watches is given by C = 300 + 3Q2, where Q is the level of output and C is total cost. If the price of watches is P54, how many watches should Jessy produce to maximize profit? Does the firm profit? Should it shut down in the short run? Explain

The cost of producing watches is given by C = 300 + 3Q2, where Q is the level of output and C is total cost. If the price of watches is P54, how many watches should Jessy produce to maximize profit? Does the firm profit? Should it shut down in the short run? Explain

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter9: Market Structure And Long-run Equilibrium

Section: Chapter Questions

Problem 1MC

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The cost of producing watches is given by C = 300 + 3Q², where Q is the level of output and C is total cost.

If the price of watches is P54, how many watches should Jessy produce to maximize profit?
Does the firm profit? Should it shut down in the short run? Explain

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