Write the expressions for the MC, AVC and ATC at Smell the Roses. In a diagram, draw the MC, AVC and ATC curves you found. (Keep in mind that the MC and AVC curves in this example are straight lines.) The market for cut flowers is perfectly competitive. On weekdays, the florist can sell bouquets at a unit price of $40. b) Should the florist stay open on weekdays? If so, how many bouquets should it sell to maximize profit? Would the florist be profitable on weekdays? On weekends, the market price of a bouquet drops to $20. c) Should a typical florist stay open for business? If, so how many bouquets should it sell to maximize profit? Would the florist be profitable on weekends?
Write the expressions for the MC, AVC and ATC at Smell the Roses. In a diagram, draw the MC, AVC and ATC curves you found. (Keep in mind that the MC and AVC curves in this example are straight lines.) The market for cut flowers is perfectly competitive. On weekdays, the florist can sell bouquets at a unit price of $40. b) Should the florist stay open on weekdays? If so, how many bouquets should it sell to maximize profit? Would the florist be profitable on weekdays? On weekends, the market price of a bouquet drops to $20. c) Should a typical florist stay open for business? If, so how many bouquets should it sell to maximize profit? Would the florist be profitable on weekends?
Chapter7: Proudction Costs
Section: Chapter Questions
Problem 21SQ
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Question
a) Write the expressions for the MC,
The market for cut flowers is
b) Should the florist stay open on weekdays? If so, how many bouquets should it sell to maximize profit? Would the florist be profitable on weekdays?
On weekends, the market price of a bouquet drops to $20.
c) Should a typical florist stay open for business? If, so how many bouquets should it sell to maximize profit? Would the florist be profitable on weekends?
Transcribed Image Text:Problem 1
Smell the Roses is a small flower stand with a total cost of TC = q? +10q + 144.
In the short run, the recurring fixed cost is entirely sunk.
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