A bike repair shop charges the competitive market price of $9 per bike repaired (P=$9). The firm's cost is given by C(Q) =Q³/3. Which of the following is NOT TRUE? O The revenue at the optimal quantity is 27. O None of the above. O The total cost at the optimal quantity is 9. O The maximized profit is 18. O The quantity that maximizes profit is q=3.

A bike repair shop charges the competitive market price of $9 per bike repaired (P=$9). The firm's cost is given by C(Q) =Q³/3. Which of the following is NOT TRUE? O The revenue at the optimal quantity is 27. O None of the above. O The total cost at the optimal quantity is 9. O The maximized profit is 18. O The quantity that maximizes profit is q=3.

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

Chapter19: The Problem Of Adverse Selection

Section: Chapter Questions

Problem 3MC

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