Please refernece attachment. See image below. c. How much would it have cost you to bake all 10 cakes?Instructions: Enter your answer as a whole number.LA$d. How much would it have cost you to purchase all 10 cakes?Instructions: Enter your answer as a whole number.$LA Next Friday, you plan to sell cakes at a bake sale to raise money for your school. You plan to charge $30 per cake, and you anticipatethat you will sell 10 cakes. You can either purchase cakes to sell or bake them yourself. If you purchase the cakes, they will cost $25each. If you bake your own cakes, your cost depends upon the number of cakes you bake, as shown in the table below.Number of cakes you Total cost of bakedbakecakes ($)01234Bake56$78910a. How many cakes should you bake? How many cakes should you purchase?Instructions: Enter your answer as a whole number.cake(s) and purchasecake(s).b. Given your answer to part a, how much in total will the 10 cakes cost you?Instructions: Enter your answer as a whole number.0102236527090112136162190

Answered: c. How much would it have cost you to…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

Please refernece attachment. See image below.

c. How much would it have cost you to bake all 10 cakes?
Instructions: Enter your answer as a whole number.
LA
$
d. How much would it have cost you to purchase all 10 cakes?
Instructions: Enter your answer as a whole number.
$
LA

Next Friday, you plan to sell cakes at a bake sale to raise money for your school. You plan to charge $30 per cake, and you anticipate
that you will sell 10 cakes. You can either purchase cakes to sell or bake them yourself. If you purchase the cakes, they will cost $25
each. If you bake your own cakes, your cost depends upon the number of cakes you bake, as shown in the table below.
Number of cakes you Total cost of baked
bake
cakes ($)
0
1
2
3
4
Bake
5
6
$
7
8
9
10
a. How many cakes should you bake? How many cakes should you purchase?
Instructions: Enter your answer as a whole number.
cake(s) and purchase
cake(s).
b. Given your answer to part a, how much in total will the 10 cakes cost you?
Instructions: Enter your answer as a whole number.
0
10
22
36
52
70
90
112
136
162
190

Expert Solution

Step 1

The cost of purchasing the cake is $25 per cake

Price of cake =$30

To solve subparts a and b, we have to calculate the marginal cost of cake from 0 to 10 and then compare the marginal cost of production with the purchasing cost (i,e, 25)

If MC> 25, purchasing is more profitable because the marginal cost of cake if it purchase is $25

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions