Cepeda mowers is a small priceaccepting company which means

 Cepeda mowers is a small price-accepting company (which means MI = P). The current service price in the market is $ 20 per acre. The costs of cutting grass are given by total cost = 0.1q² + 10q + 50 where q = number of acres that Cepeda decides to cut daily-  A. How many acres should you decide to cut to maximize the benefits? B. Calculate your maximum daily benefits.

Benefits would be maximized when P = MC:

TC = 0.1q² + 10q + 50

MC = d(TC)/dq = 0.2q + 10

0.2q + 10 = 20

q = 50 (acres cut)

Benefits = Pq - TC = 20 x 50 - 0.1 x 50 x 50 - 550 = $200

Cepeda mowers is a small price-accepting company (which means MI = P). The current service price in the market is $ 20 per acre. The costs of cutting grass are

Cepeda mowers is a small priceaccepting company which means

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