Quiz: Quiz #10 21.03 submit Qu 10z2 (9 Suppose Angelica opens a suma stove mear

Question

Quiz: Quiz #10 21.03 submit Qu 10z2 (9 Suppose Angelica opens a suma stove mear campn, selling bvel bikot sandices Use the which shows Be demand and cent for Angelica's boef bshäet sanndwiches, te aw oner your nesponse in dellars and cents) b. Al the above price and qeantity she is making an ecc pealit for loss) ofs . What ih Angelica ely to do in the long nn? O A. Continue selling the same number of beef brisket sandwiche OC. Exi the industry Pmbto o O D. Decrease her average total cost Type here to search & 7 5 6

Explanation / Answer

A) Fir maximising her profit angelica will choose the point where Marginal cost intersects with the marginal revenue.

At this point quantity equals 55 and the price at this level is $4.50

B) She is losing $55 per day as the ATC is at $5.5. So $1*55 units = $55

C) She should exit the industry as she is not able to cover her AVC cost even.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.