Dtermine the price elasticity of demand at optimal

Reference no: EM13452532

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	Quantity Purchased
	(Dozen per day)
$12	3
$11	7
$10	12
$9	20
$8	35
$7	60
$6	100
$5	160
$4	250

What price should the cupcake store charge?
If the fixed cost for the firm is $100 per day, how much profit will the firm make in one day?
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)?

Is the formula for finding the correct level of output on the bottom of page 65 in your text satisfied?

Reference no: EM13452532

Questions Cloud

Describe what it means to be lactase deficient and the : 1. explain what it means to be lactase deficient and the ramifications.your response should be at least 75 words in

I restaurantbar decides to lower price of beer by 050 by : a restaurantbar is analyzing its pricing of beer. it has determined that the price elasticity of demand for beer is

Would you apply this strategy legalization : write a 1500 -word paper that responds to the following question1.would you apply this strategy legalization

Te case of the oily rags outside of the citys fleet : the case of the oily rags outside of the citys fleet operation maintenance bays there is a dumpster with a nicely

Dtermine the price elasticity of demand at optimal : a cupcake store is located in a mall and is the only cupcake store in that mall.nbsp the demand schedule for cupcakes

Record the transactions in the proper general ledger : at the beginning of 2010 gonzales companys accounting records had the general ledger accounts and balances shown in the

Suppose you are working with a data set that has some : some questions in part a require that you access data from statistics for people who think they hate statistics. this

Describe the economic impact of the law provide specific : choose 1 u.s. environmental law. state the name of the law and the date the law was passed.summarize the major

As you have learned population dynamics are caused by the : in this lab you will determine how an invasive species-the zebra and quagga mussel-affects other species in the

User Account

All Pages