Spacely Sprockets' short-run cost curve is: C(q, K) =
+ 15K, where q is the number of Sprockets produced and K is the number of robot hours Spacely hires. Currently, Spacely hires 10 robot hours per period. The short-run marginal cost curve is: MC(q, K) = 50
. If Spacely receives $250 for every sprocket he produces, what is his profit maximizing output level? Calculate Spacely's profits.

Question

Spacely Sprockets' short-run cost curve is: C(q, K) =  
+ 15K, where q is the number of Sprockets produced and K is the number of robot hours Spacely hires. Currently, Spacely hires 10 robot hours per period. The short-run marginal cost curve is: MC(q, K) = 50  
. If Spacely receives $250 for every sprocket he produces, what is his profit maximizing output level? Calculate Spacely's profits.

Quizplus · Accepted Answer

The Answer of Spacely Sprockets' short-run cost curve is: C(q, K) =  
+ 15K, where q is the number of Sprockets produced and K is the number of robot hours Spacely hires. Currently, Spacely hires 10 robot hours per period. The short-run marginal cost curve is: MC(q, K) = 50  
. If Spacely receives $250 for every sprocket he produces, what is his profit maximizing output level? Calculate Spacely's profits.

Spacely Sprockets' Short-Run Cost Curve Is: C(q, K) =