The graph to the right depicts the demand for caffe lattes at a local coffeehouse along with the average total cost and marginal cost of producing lattes. Suppose the coffeehouse is in a monopolistically competitive market in the short run. How many caffe lattes should this coffeehouse produce maximize profits?O units. (Enter a numeric response using an integer.) MC What is the corresponding profit-maximizing price? s per latte. (Enter a numeric response using a real number rounded to two decimal places.) * 3.20 쓸 2.9아 흥 2.42| 영 2.00아 ATC Calculate the coffeehouse's profits on caffe lattes. $. (Enter a numeric response using a real number rounded to two decimal places.) MR 38 95 Quantity of caffe lattes (per day)

The graph to the right depicts the demand for caffe lattes at a local coffeehouse along with the average total cost and marginal cost of producing lattes. Suppose the coffeehouse is in a monopolistically competitive market in the short run. How many caffe lattes should this coffeehouse produce maximize profits?O units. (Enter a numeric response using an integer.) MC What is the corresponding profit-maximizing price? s per latte. (Enter a numeric response using a real number rounded to two decimal places.) * 3.20 쓸 2.9아 흥 2.42| 영 2.00아 ATC Calculate the coffeehouse's profits on caffe lattes. $. (Enter a numeric response using a real number rounded to two decimal places.) MR 38 95 Quantity of caffe lattes (per day)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Del's and Rodney's are two plumbing services in a gentrifying area of South East London. Within the area they service, the two firms operate as a duopoly and together serve one hundred percent of the available local market. One of their key lines of business is visiting customer's homes to install a new shower rail. A student project has been investigating the local plumbing business and has estimated the following information for Del's and Rodney's: Total demand for new shower rails per week is given by P = 200 - 4Q Where Q is total market demand and can be divided between Del's (qd) and Rodney's (qr) such that Q = qd + qr Assuming that the marginal cost of serving an extra customer is £40 for each, and that marginal revenue for Del is given by MRd 2008qd - 4qr And marginal revenue for Rodney is given by MRr Then 2008qr - 4qd 8 CONTINUED
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