# 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