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Pure pool services provides weekly pool maintenance in BeverlyHills. Dozens of firms provide this service. the service is typically sold as a four-month contract. the market price of a fouth-month contract is $115. Pure has fixed cost of $3500 for the summer. the manger of pure has estimated the following marginal cost function, using data from the last ywo years. MC=125-0.42Q+0.0021Q^2, where MC is measured in dollars and Q is the number of pool sserviced each summer. Each of the estimated coefficientis statistically significant at the 95 per cent confidence interval. What is the optimal output level?

Microeconomics, Economics

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