Amanda is like all other managers in a perfectly competitive industry except in one respect: Because of her great sense of humor, people are willing to work for her for half the going wage rate. All other firms in the industry have short-run total cost curves given by STCQ = M + 8Q + wQ², where M is the salary paid to ordinary managers and w is the going wage rate for the industry. (Note: The associated marginal cost curve is dSTCQ/dQ = MCQ = 8 + 2wQ.) Instructions: Round your answer to the nearest penny (2 decimal places). If all firms in the industry face an output price of $24, and if w = 2, how much more will Amanda be paid than the other managers in the industry?
