Jimmys landlady Complains about all the visitors coming into the buildings and t

Question

Jimmys landlady Complains about all the visitors coming into the buildings and tells jimmy to stop selling peeps. Jimmy discovers, however that if he gives the landlady $0.20 for every peep he sells, she will stop complaining. What effect does the $0.20 per -Peep bride have on jimmys marginal cost per peep? What is the new profit maximizing quantity of peeps? What effect does the $0.20 per-peep bride have an jimmys total profit. Calculate jimmys price and quantity effect from the change in price from parts b and e

Explanation / Answer

If the total cost is x then increase in $.20q if he will pay to land lady and marginal cost will increase by $.20.

This will increase the price and reduce quantity.

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