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Andrew has the only licensed stand... Andrew has the only licensed stand to sell sandwiches in Gaslight Square. The weekly quantity demand for his
Andrew has the only licensed stand... Andrew has the only licensed stand to sell sandwiches in Gaslight Square. The weekly quantity demand for his sandwiches is: Q = 2,000 - 100P Draw a price and quantity diagram, with the demand curve, based on this formula. Label the numbers at the two endpoints of the demand curve. Draw a table of numbers with the following four columns: (i) Price, (ii) Quantity, (iii) Total Revenue and (iv) Marginal Revenue. Fill in all four columns with solved numbers. Now draw the Marginal Revenue curve on the diagram. Label it's endpoints with correct numbers. What is the total revenue maximizing (but not necessarily profit maximizing) price and quantity? Find the total revenue maximizing price and quantity on the demand curve, as well. Andrew has a Marginal Cost of $5 per sandwich produced. Draw the Marginal Cost curve on the diagram. What is Andrew's profit maximizing price and quantity of sandwiches per week? Label that point on the diagram, as well.
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