Ciabatta Bread Sold Price (P) Total Cos (TC) $2.00 5.50 5.00 8.00 10.00 4.00 11.

Question

Ciabatta Bread Sold Price (P) Total Cos (TC) $2.00 5.50 5.00 8.00 10.00 4.00 11.50 3.50 12.50 13.00 2.5014.00 16.00 Per Hour () $6.00 5.50 4.50 3.00 200 a. To maximize profits, Maria should sell loaves of ciabatta bread per hour. (Enter your response as an integer) Maria should charge a price of s Enter your response rounded to two decimal places) Maria's maximum profit is S(Enter your response rounded to two decimal places,) b. The marginal cost when selling the profit-maximizing number of loaves of ciabatta bread is Enter your answer in each of the answer boxes revenue when selling the profit-maximizing number of loaves of ciabatta bread is $(Enter your response rounded to two decimal places,) T SEnter your response rounded to two decimal places)

Explanation / Answer

Following is the required table -

(a)

Maria will maximize profit when she sell that quantity of ciabatta bread corresponding to which MR equals MC.

MR equals MC corresponding to 6 loaves of ciabatta bread per hour.

So,

To maximize profits, Maria should sell 6 loaves of ciabatta bread per hour.

Maria should charge a price of $3.00

Maria's maximum profit is $5.00

(b)

The marginal revenue when selling the profit-maximizing number of loaves of ciabatta bread is $0.50.

The marginal cost when selling the profit-maximizing number of loaves of ciabatta bread is $0.50.

Q P TR MR TC MC Profit (TR - TC) 0 6 0 - 2 2 -2 1 5.50 5.50 5.50 5.50 3.50 0 2 5 10 4.50 8 2.50 2 3 4.50 13.50 3.50 10 2 3.50 4 4 16 2.50 11.50 1.50 4.50 5 3.50 17.50 1.50 12.50 1 5 6 3 18 0.50 13 0.50 5 7 2.50 17.50 -0.50 14 1 3.50 8 2 16 -1.50 16 2 0

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