For the pizza seller whose marginal, average variable, and average total cost curves are shown in the graph below, what is the profit-maximizing level of output and how much profit will this producer earn if the price of pizza is $1.50 per slice?Instructions: In the graph below, label all three curves by clicking on the dropdown to select the appropriate label.3.503.253.002.752.50Price ($/slice)L2.252.001.751.501.251.000.750.500.250Cost CurvesSelect ▼Select ▼Select ▼100 200 300 400 500 600 700 800 900Quantity (slices/day)Ri Instructions: Enter your response as a whole number. If you are entering a negative number, besure to include a negative sign (-).When the price is $1.50 per slice, the profit-maximizing level of output isslices per day.Instructions: Enter your response rounded to the nearest penny (two decimal places).At the profit-maximizing level of output, the producer's profit is: $per day.

1.) When the price is $1.50 per slice, the profit-maximizing level of output is 450 slices per…

Answered: For the pizza seller whose marginal,…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A7 You are the manager of a bakery that produces and packages gourmet muffins, and you currently sell muffins in packages of 3. A consultant’s report has estimated the (inverse) demand of a typical consumer to: P = 3 − 0.5Q If your cost of producing bran muffins is C(Q) = Q: (a) What is the marginal cost of muffins? (b) Draw the demand and marginal cost on a diagram. (c) Determine the optimal number of muffins to sell in a single package. (d) What price should the firm charge for each park?
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