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I need help with an assignment. The assignment is: Your cookies are sold in a perfectly competitive market with a market price of $5 per
I need help with an assignment. The assignment is:
Your cookies are sold in a perfectly competitive market with a market price of $5 per dozen.
- Calculate the profit-maximizing quantity of dozens of cookies for your cookies.
- Calculate the level of profit earned at that level of production.
Assume: VC is $13.73 for 3 dozen cookies, labor is $10 for 2 dozen cookies, fixed cost of $30.
The cost measurements are from a previous assignment:
Measures of Cost for Baking Cookies Output (dozens of TFC (Oven TVC TC AFC AVC ATC MC cookies) Rental) 30 5 18.73 $ 48.73 5 30.00 5 18.73 $ 48.73 $ 5.00 30 5 23.73 $ 53.73 $ 15.00 $ 11.87 $ 26.87 $ 5.00 30 5 28.73 5 58.73 $ 10.00 5 9.58 $ 19.58 5 18.73 30 $ 47.46 77.46 $ 7.50 5 11.87 $ 19.37 $ 5.00 30 5 52.46 $ 82.46 $ 6.00 $ 10.49 $ 16.49 $ 5.00 DOSQUAWNE 30 $ 57.46 5 87.46 $ 5.00 $ 9.58 $ 14.58 $ 18.73 30 5 76.19 $106.19 $ 4.29 5 10.88 $ 15.17 5 5.00 30 5 81.19 $111.19 $ 3.75 5 10.15 $ 13.90 $ 5.00 30 5 86.19 $116.19 $ 3.33 $ 9.58 $ 12.91 $ 18.73 10 30 $104.92 $134.92 $ 3.00 $ 10.49 $ 13.49 $ 5.00Measures of Cost for Baking Cookies Output (dozens of TC Profit (TR- MR MC Change TR cookies) IC) In Profit 5.00 $ 48.73 5 (43.73) $5.00 $ 5.00 50.00 10.00 $ 53.73 $ (43.73) $5.00 5 5.00 50.00 15.00 $ 58.73 (43.73) $5.00 $ 18.73 ($13.73) 20.00 $ 77.46 5 (57.46) $5.00 5 5.00 50.00 25.00 5 82.46 S (57.46) $5.00 $ 5.00 50.00 30.00 $ 87.46 (57.46) $5.00 $ 18.73 ($13.73) 35.00 $ 106.19 $ (71.19) $5.00 $ 5.00 50.00 40.00 $ 111.19 S (71.19) $5.00 5 5.00 50.00 45.00 $ 116.19 5 (71.19) $5.00 5 18.73 ($13.73) 10 50.00 5 134.92 $ (84.92) $5.00 5 5.00 50.00Step by Step Solution
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