Question

number 3

3) Central Grocery in New Orleans is famous for its muffaletta, a large round sandwich filled with deli meats and topped with a tangy olive salad. Suppose the following table represents cost and revenue data for Central Grocery. Fill in the columns for TR, MR, MC, ATC, and profit. If Central Grocery wants to maximize profits, what price should it charge for a muffaletta, what quantity should it sell, and what wil be the amount of its total profit? Total Marginal Revenue Revenue Total Cost Marginal Total Cost Average Muffalettas (TC) Cost MC)(ATC) Profit MR) Sold per Day Price P) (TR) $12 $15 18 14 20 13 21 12 10 30 52 6 78 10 4) Refer to Figure below. Figure below depicts a monopolistically competitive barber shop. Use the

Answer 1

Quantity	price	Total revenue	marginal revenue	total cost	marginal cost	atc	Profit
0	15	0		12			-12
1	14	14	14	18	6	6	-4
2	13	26	12	20	2	10	6
3	12	36	10	21	1	7	15
4	11	44	8	23	2	5.75	21
5	10	50	6	26	3	5.2	24
6	9	54	4	30	4	5	24
7	8	56	2	35	5	5	21
8	7	56	0	42	7	5.25	14
9	6	54	-2	52	10	5.7	2
10	5	50	-4	78	16	7.8	-28

The equilibrium level is where marginal cost equals to marginal revenue in this case add quantity equals to 6 the marginal revenue is 4 and the marginal cost is also 4 and we can see that the profit in this case is 24 which is the maximum profit so show 6 units of the good should be produced at price $ 9 which gives a profit of $24.

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