Home » (3) Suppose a firm has two stores on Main Street, which is one mile long, and there are 10,000 customers on Main Street. However, the firm covers…

# (3) Suppose a firm has two stores on Main Street, which is one mile long, and there are 10,000 customers on Main Street. However, the firm covers…

(3) Suppose a firm has two stores on Main Street, which is one mile long, and there are10,000 customers on Main Street. However, the firm covers only 25% of Main Street.Marginal transportation cost is given by t=\$80 per mile round trip. The averageproduction cost of the product sold is given by c=\$35. Customers value each unit of ourstore’s product at V=\$50. Store set-up cost equals F=\$2,500.(a) Calculate the maximum price the form can charge(b) Calculate the firm’s profit(4) What is the profit-maximizing number of stores (n) for a company that only covers50% of the market. Provide an abstract equation

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