A cupcake store is located in a mall and is the only cupcake store in that mall. The demand schedule


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A cupcake store is located in a mall and is the only cupcake
store in that mall. The demand schedule 2 answers below » A cupcake store is located in a mall and is the only cupcake
store in that mall. The demand schedule for cupcakes (per dozen) is
given in the table below. If the marginal cost to produce a dozen
cupcakes is $4 per unit, how many units should the firm
produce? Price Quantitiy Purchased (dozen per day) $12 3 $11 7 $10 12 $9 20 $8 35 $7 60 $6 100 $5 160 $4 250 1. What price should the cupcake store charge? 2. If the fixed cost for the firm is $100 per day, how much
profit will the firm make in one day? 3. What is the price elasticity of demand View complete question » A cupcake store is located in a mall and is the only cupcake
store in that mall. The demand schedule for cupcakes (per dozen) is
given in the table below. If the marginal cost to produce a dozen
cupcakes is $4 per unit, how many units should the firm
produce? Price Quantitiy Purchased (dozen per day) $12 3 $11 7 $10 12 $9 20 $8 35 $7 60 $6 100 $5 160 $4 250 1. What price should the cupcake store charge? 2. If the fixed cost for the firm is $100 per day, how much
profit will the firm make in one day? 3. What is the price elasticity of demand at the optimal
price/quantity combination (use the next lower price level as the
second point in your calculation)? 4. Is the formula for finding the correct level of output on the
bottom of page 65 in your text satisfied? View less » May 28 2015 10:38 PM

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