Demand schedule for cupcakes, Macroeconomics

Assignment Help:

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

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?


Related Discussions:- Demand schedule for cupcakes

Right to sell blood, Singer suggests that although the right to sell blood ...

Singer suggests that although the right to sell blood does not threaten the formal right to give blood, it is incompatible with "the right to give blood, which cannot be bought, wh

Indirect tax, Discuss whether high indirect taxes are best way to discourag...

Discuss whether high indirect taxes are best way to discourage smoking

Consumer confidence, Use a diagram of the open economy model (e.g. fig 32.4...

Use a diagram of the open economy model (e.g. fig 32.4 from the text) to illustrate and explain the effect of the following event on the market for loanable funds, the level of net

Calculate private market equilibrium, Consider the following Marginal Priva...

Consider the following Marginal Private Cost (MPC), Marginal Social Cost (MSC) and market demand curves. These curves relate to a market for a product, the production of which gene

Stocks and flows, Stocks and Flows   When studying economics, one must b...

Stocks and Flows   When studying economics, one must be sure whether the variable being studied is a stock variable or a flow variable. Failure to do so can cause faulty economi

Mtric, Rewrite the national-income model (3.23) in the format of (4.1), wit...

Rewrite the national-income model (3.23) in the format of (4.1), with Y as the first vari¬able. Write out the coefficient matrix and the constant vector.

Describe about monetary policy, Q. Describe about Monetary policy? By m...

Q. Describe about Monetary policy? By monetary policy we mean policy directed at controlling the money supply and interest rates. In most nations, central bank is responsible f

Modern theory of rent, Explain modern theory of rent eith diagrams and defi...

Explain modern theory of rent eith diagrams and defination

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd