Maria manages a bakery, that specializes in ciabatta bread, and has the following information on demand and costs:Ciabatta Bread Sold PricePer Hour (Q)(P)0$6.0015.5025.0034.5044.0053.5063.0072.5082.00Total Cost(TC)$2.006.5010.0013.0015.5017.5019.0021.0024.00loaves of ciabatta bread per hour. (Enter your response as an integer.)a. To maximize profits, Maria should sellMaria should charge a price of $Maria's maximum profit is $(Enter your response rounded to two decimal places.)(Enter your response rounded to two decimal places.)(Enter yourb. The marginal revenue when selling the profit-maximizing number of loaves of ciabatta bread is $response rounded to two decimal places.) The marginal cost when selling the profit-maximizing number of loaves ofciabatta bread is $. (Enter your response rounded to two decimal places.)

Each firm maximises profit by producing at a point where marginal revenue is equal to marginal cost.

Maria manages a bakery, that specializes in ciabatta bread, and has the following information on demand and costs: Ciabatta Bread Sold Price Per Hour (Q) (P) $6.00 5.50 5.00 4.50 4.00 3.50 3.00 2.50 2.00 0 1 4567 W N 3 8 Total Cost (TC) $2.00 6.50 10.00 13.00 15.50 17.50 19.00 21.00 24.00 a. To maximize profits, Maria should sell loaves of ciabatta bread per hour. (Enter your response as an integer.) Maria should charge a price of $ (Enter your response rounded to two decimal places.) Maria's maximum profit is . (Enter your response rounded to two decimal places.) (Enter your b. The marginal revenue when selling the profit-maximizing number of loaves of ciabatta bread is $ response rounded to two decimal places.) The marginal cost when selling the profit-maximizing number of loaves of ciabatta bread is $. (Enter your response rounded to two decimal places.)

Maria manages a bakery, that specializes in ciabatta bread, and has the following information on demand and costs: Ciabatta Bread Sold Price Per Hour (Q) (P) $6.00 5.50 5.00 4.50 4.00 3.50 3.00 2.50 2.00 0 1 4567 W N 3 8 Total Cost (TC) $2.00 6.50 10.00 13.00 15.50 17.50 19.00 21.00 24.00 a. To maximize profits, Maria should sell loaves of ciabatta bread per hour. (Enter your response as an integer.) Maria should charge a price of $ (Enter your response rounded to two decimal places.) Maria's maximum profit is . (Enter your response rounded to two decimal places.) (Enter your b. The marginal revenue when selling the profit-maximizing number of loaves of ciabatta bread is $ response rounded to two decimal places.) The marginal cost when selling the profit-maximizing number of loaves of ciabatta bread is $. (Enter your response rounded to two decimal places.)

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter22: Getting Divisions To Work In The Firm’s Best Interests

Section: Chapter Questions

Problem 3MC

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