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

Measurement of output, Different approaches to measure aggregate output

Different approaches to measure aggregate output

Dumping and anti-dumping regulation, Based on the e-Activity, describe the ...

Based on the e-Activity, describe the dumping incident and how anti-dumping regulations could have been modified to prevent the incident you described.

Expenditures and the effects of fiscal policy, Expenditures and the Effects...

Expenditures and the Effects of Fiscal Policy are stated as follows: Having finished the discussion on the tax policy and taxation, now let’s us focus on expenditures and the e

Determine what is the yield curve, Determine what is the yield curve Th...

Determine what is the yield curve The yield curve is a graph of interest rates of different maturity (recalculated to yearly rates) at a particular point in time. It is common

Increasing opportunity cost, Using the PPC show what is meant by the law of...

Using the PPC show what is meant by the law of increasing opportunity cost and explain (state) why that law exists. Why is that law important when deciding whether or not to watch

Explain the problem with IS-LM model, Q. Explain the problem with IS-LM mod...

Q. Explain the problem with IS-LM model? The starting point of AS-AD model is an assumption in IS-LM model (and in the cross model) that limits its usefulness. This is an assum

Gross domestic product, In 1 to 2 sentences respond to the following commen...

In 1 to 2 sentences respond to the following comment. "Cleaning your own house is not counted in gross domestic product because it does not represent economic production."

The government - rest of the world and the financial markets, The Governmen...

The Government, Rest of the World and the financial markets total expenditure of government can be divided into two parts: transfers to private sector and consumption.

Price, The prices of fresh fruits have risen recently in the Jackson area. ...

The prices of fresh fruits have risen recently in the Jackson area. Why would this have occurred? Explain.

Determination of l in the cross model, Determination of L in the cross mode...

Determination of L in the cross model As firms will produce less than Y OPT , they require less labor than L OPT . We can determine exactly how much L they need in order to pro

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