James’s Carpet Cleaning Service is a small business that acts as a price taker. The prevailing market price of carpet cleaning is $26 per room. James’s costs are given by TC=0.3q2+8q+60 with MC = 0.6q+8 where q is the number of rooms James chooses to clean a day.
a) How many rooms should James choose to clean in optimum?
b) What is the equation of James’s S curve?
c) Can you determine how much profit he makes? If yes, what is it? If no, what other information do you need?
d) Is this carpet cleaning market in long run equilibrium? At what level of q will James arrive at long run equilibrium? What will be the market price then?
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.