The profit maximization chapter in Nicholson is explained.
1. John's Lawn Mowing Service is a small business that acts as a price taker (MR = P). The prevailing market price of lawn mowing is $20 per acre. John's costs are given by total cost = .1q^2 + 10q + 50 where q = the number of acres John chooses to cut a day a. How many acres should John choose to cut in order to maximi