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

What is consumption?, "Consumption" is an old name for tuberculosis (TB) th...

"Consumption" is an old name for tuberculosis (TB) that explains how the illness wastes away or consumes its victims. TB is "an ancient enemy" that has plagued human kind for more

Describe short-run equilibrium price-demand, The aim of this task is to exp...

The aim of this task is to explore the effects of a supply shock on a firm and thereby on the industry. Suppose that war breaks out in the Middle East, where a considerable portion

Simple regression analysis uncover the ceteris paribus, Let kids denote the...

Let kids denote the number of children ever born to a woman, and let educ denote years of education for the woman. A simple model relating fertility to years of education is kids =

Protectionism and free trade, why is international trade important for sout...

why is international trade important for south Africa

Gross domestic savings, Gross Domestic Savings  Income not devoted to c...

Gross Domestic Savings  Income not devoted to current consumption is saved. In an economy during a particular year some units will consume less than their income while some wil

Macro Economics, At the same meeting of the open market committee where it ...

At the same meeting of the open market committee where it announced Quantitative Easing 3, the Fed chose to also announce that its currently low Fed funds rate of 0 to .25% would b

Each good as a final good or intermediate good, Classify each good as a fin...

Classify each good as a final good or intermediate good. (briefly explain wach choice) 1. running shoes 2. cotton fibers 3. watches 4. textbooks 5. coal 6. sunscr

What are the important tools of making decisions, What are the important to...

What are the important tools of making decisions? Making Decisions: a. How economists model decision making through individuals and firms b. Implicit costs and Explicit-C

Find the equilibrium quantities and prices , Consider the following simple ...

Consider the following simple economy which consists of two industries, guns (1) and butter (2) and is characterized by the following input-output matrix. Suppose also that

Lm curve with inflation, The LM curve with inflation  We know that LM ...

The LM curve with inflation  We know that LM curve will shift upwards when P increases (presuming MS is constant). This is still true though we can also add that LM curve glid

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