Limited access

Santiago is an oyster farmer in a competitive market and comes to you for advice regarding how much he should produce in order to maximize his profits. The going market price for oysters is \$2 an oyster and his cost function (per oyster) is the following:$C(q) = 1.5q\$. Note this means he has no fixed costs and his marginal costs of production are constant. The minimum he can produce is 0 oysters and the maximum he can produce is 1,000 oysters.

Select an assignment template