The Chess Club at Extinct Mammoth University (EMU, guess what their mascot is!!!) is planning its annual fund-raising “Stuffathon". The club will charge students $0.80 per serving of pasta. The only expenses the club will incur are the cost of the pasta, estimated at $0.25 per serving, and the $500.00 cost of renting the facility for the evening. The Chess Club has purchased enough pasta for 10,000 servings. • Write down the associated cost, revenue, and profit functions. • How many servings of pasta must the society sell in order to break even? • Find the marginal revenue function and interpret the marginal revenue at 8,000 servings.

The Chess Club at Extinct Mammoth University (EMU, guess what their mascot is!!!) is planning its annual fund-raising “Stuffathon". The club will charge students $0.80 per serving of pasta. The only expenses the club will incur are the cost of the pasta, estimated at $0.25 per serving, and the $500.00 cost of renting the facility for the evening. The Chess Club has purchased enough pasta for 10,000 servings. • Write down the associated cost, revenue, and profit functions. • How many servings of pasta must the society sell in order to break even? • Find the marginal revenue function and interpret the marginal revenue at 8,000 servings.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter17: Capital And Time

Section: Chapter Questions

Problem 17.11P

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