Dunkin’ Donuts assumes you, like all the other locally owned shops, will choose to close rather than compete, and they will have a monopoly on donut sales in your area. If they made that assumption,What quantity of donuts would they be most likely to sell to maximize profits?What price would they charge per donut? **Donkink' Donuts Production and Cost Analysis**This table provides an analysis of the costs and revenue associated with different levels of production at Donkink' Donuts. The columns are as follows:1. **Quantity**: The number of units produced. - 2,000 - 3,000 - 5,000 - 10,000 - 15,000 - 25,000 - 50,0002. **Variable Costs**: The costs that vary with the production level. - Ranges from $500 to $12,500.3. **Fixed Costs**: The costs that remain constant regardless of the production level. - Constant at $8,500 for all quantities.4. **Total Costs**: The sum of variable and fixed costs. - Ranges from $9,000 to $21,000.5. **Price**: The selling price per unit. - Decreases as quantity increases, from $4 to $0.3.6. **Total Revenue**: The total income from sales (Price x Quantity). - Ranges from $8,000 to $20,000.7. **Profit**: Total Revenue minus Total Costs. - Positive for some output levels but negative at others, ranging from ($6,000) to $9,000.8. **Marginal Costs**: The additional cost of producing one more unit. - Consistent at $0.3 for quantities 3,000 and above.9. **Marginal Revenue**: The additional revenue generated from selling one more unit. - Varies, beginning at 2.5 and decreasing to 0.1.This table highlights the interplay between costs and revenues at varying production levels, illustrating how economies of scale can affect profitability. It shows that as production increases, unit prices and revenues per additional unit generally decrease, impacting overall profitability.

Answered: Image /qna-images/answer/c8565e66-5056-48c5-80d3-60401a5be0d9.jpgAccording to the above table Highest profit received by the firm i.e. 9,000 when they produce 10,000 donuts. therefore 10,000 donuts would be sold to maximize the profitAccording to the above table Highest profit received by the firm i.e. 9,000 when they produce 10,000 donuts where they charge $2 per donut. therefore firm should charge $2 to maximize the profit