The market price for lawn mowing services is $20. To maximize its profits, how m

Question

The market price for lawn mowing services is $20. To maximize its profits, how many lawns should Lawns, Inc., mow per day? Here is the table Output 0 Short-run Total Cost 100, Short-run Marginal Cost 0; Output 1, short-run total cost 110, short-run marginal cost 10; output 2, short-run total cost 120, short-run marginal cost 10; output 3,short-run total cost 130, short-run marginal cost 10; output 4, short-run total cost 145, short-run marginal cost 15; output 5, short-run total cost 165, short-run marginal cost 20; output 6, short-run total cost 190, short-run marginal cost 25.

Explanation / Answer

Hi, If you like my answer rate me lifesaver first...that way only I can earn points. Thanks Profit is maximum when MR = MC MR = P = $20 here MC = 20 when output = 5 units so answer = 5 units

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