Currently, the marginal cost equation for a shoe manufacturing company is given by MC = 10 + 2Q. The market price per pair is $60. How many units should the company produce?
What will be an ideal response?
The company should produce 25 units. We get this by setting MC = P and solving for Q: 10 + 2Q = 60 or
2Q = 50.
Q = 25 units.
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