Biwei’s Barbershop is a business in a perfectly competitive market with total cost of TC = 0.5Q 2 per day. The corresponding marginal cost is MC=Q. Assume that the market price of a haircut is $15.

How many haircuts should Biwei give each day if he wants to maximize his profit? What is the profit?

It should give 15 haircut

And maximum profit will be 112.5

Explanation:

It is given total cost

Corresponding marginal cost MC = Q

For maximizing profit P = MC

Assuming market price of haircut Q = 15

So it should give 15 haircut

So P = MC = Q = 15

Profit is equal to

Profit = PQ - TC

=112.5

almost done 23 out of 25

a

explanation: