Jerry is operating at his level of output, which maximizes profit. He can change locks for 20 different customers per day and charges each customer $35 for each lock. His total cost of changing locks is $800 and his fixed cost is $160.
show the formula and the calculation as well as the final answer.
a. What is the marginal cost for Jerry? Explain how you arrived at that answer.
b. Calculate profit.
c. Advise Jerry regarding his short-run decision to produce.
d. Advise Jerry regarding his long-run decision to produce.