Scenario: You plan to open your own donut shop. After doing some research and planning, you have created the table below to help you estimate how much to charge for your donuts to make a profit. You already identified various amounts of donuts you could potentially produce as well as the related variable and fixed costs.# of DonutsVariable CostsFixed CostsTotal Costs Average Total Cost Average Variable CostMarginal Cost2,000$2,000$10,000$12,000 3,000$2,500$10,000$12,500 5,000$3,500$10,000$13,500 10,000$4,000$10,000$14,000 15,000$7,000$10,000$17,000 25,000$20,000$10,000$30,000 50,000$80,000$10,000$90,000 Step TwoGraph the Average Total Costs, Average Variable Costs, and Marginal Costs on the same graph. Step ThreeAnswer the following questions in your Word document and submit your completed assignment.What is the lowest price you could charge for a donut and still make a profit?How many donuts would you need to produce?How much will your group sell your donuts for?Now, look up a couple of local donut shops. Compare their prices with the prices that you decided on as a group. How do your prices compare with theirs? Would you be able to compete with them? Why or why not? Explain your reasoning.

Note: Since you have posted a question with multiple subparts, we will solve the first three…

Answered: Scenario: You plan to open your own…

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

Scenario: You plan to open your own donut shop. After doing some research and planning, you have created the table below to help you estimate how much to charge for your donuts to make a profit. You already identified various amounts of donuts you could potentially produce as well as the related variable and fixed costs.

# of Donuts	Variable Costs	Fixed Costs	Total Costs	Average Total Cost	Average Variable Cost	Marginal Cost
2,000	$2,000	$10,000	$12,000
3,000	$2,500	$10,000	$12,500
5,000	$3,500	$10,000	$13,500
10,000	$4,000	$10,000	$14,000
15,000	$7,000	$10,000	$17,000
25,000	$20,000	$10,000	$30,000
50,000	$80,000	$10,000	$90,000

Step Two

Graph the Average Total Costs, Average Variable Costs, and Marginal Costs on the same graph.

Step Three

Answer the following questions in your Word document and submit your completed assignment.

What is the lowest price you could charge for a donut and still make a profit?
How many donuts would you need to produce?
How much will your group sell your donuts for?
Now, look up a couple of local donut shops. Compare their prices with the prices that you decided on as a group. How do your prices compare with theirs? Would you be able to compete with them? Why or why not? Explain your reasoning.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 6 steps with 2 images

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