2. The local restaurant owner prepares and sells pizza everyday. The equilibrium price of thispizza is 10 birr. The marginal cost of the restaurant is given as MC = 4 + 0.2Q and assume%3Dthe restaurant operates under a perfectly competitive market. How many pizzas should beproduced per day in order to maximize the profit of restaurant?- Comment on nature of firms.

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The local restaurant owner prepares and sells pizza everyday. The equilibrium price of this pizza is 10 birr. The marginal cost of the restaurant is given as MC = 4 + 0.2Q and assume the restaurant operates under a perfectly competitive market. How many pizzas should be produced per day in order to maximize the profit of restaurant? Comment on nature of firms.

The local restaurant owner prepares and sells pizza everyday. The equilibrium price of this pizza is 10 birr. The marginal cost of the restaurant is given as MC = 4 + 0.2Q and assume the restaurant operates under a perfectly competitive market. How many pizzas should be produced per day in order to maximize the profit of restaurant? Comment on nature of firms.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 3P

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