• Indicate the profit-maximizing level of output and employees along with the two ways you found this optimal level. This profit-maximizing level of output and employees will tell you how to keep the concession stand open.
• Describe the average price level for concession stand items that would be required to force the theater to shut down the concession stand in the short run, and include how you determined this level.

Total Variable cost = Number of workers employed per day " Price of labor per worker employed per day Total Cost per day = Total Variable Cost +Total fixed costs per day umber of workers employed per day Price of labor per worker employed per day Total Variable Cost Total fixed costs per day Total Cost per day varaga price of Cone 0 $120 SO $2,000 $2,000 100 $120 $240 $2,000 $2,240 $120 $2,000 $2.480 400 750 $120 $720 $2,00 $2,720 $120 $960 $2,000 $2.960 1025 10 $120 21 200 $2,000 $3,200 12 $120 51.440 $2,000 $3440 14 $1,680 $2,000 3,680 1200 $120 1250 16 $120 $1,920 $2,000 $3.920 18 $120 $2.160 $2,000 $4.160 1290 20 $120 $2,400 $2,000 1289 22 $120 $2,640 $2,000 $4,640 $2,000 $4 880 1280 $120 $2,880 Average Total Cost = Average Fixed Cost + Average Variable cost Total Revenue = Output * Average Price of Concession Stand Items Marginal Cost = Change in Total cost / Change in Quantity Profit = Total Revenue - Total Cost per day Average Variable Cost = Total Variable Cost of Labor / Output Average Fixed Cost = Total Fixed Cost / Output 12 14 Total Revenue Profit Average Variable cost Average Fixed cost Average Total Cost Marginal Cost Marginal Revenue ($2.000) $0.00 50 $0.00 SO 50 ($1,440) $2.40 $20 $22.40 $2.40 $8.00 $8.00 $3,200 $720 $1.20 $5.00 $6.20 $1.02 $6,000 $3,280 $1.00 $2.70 $3.60 50.88 $8.00 $4,240 $1.10 $2.20 $3.20 $2.17 $8.00 $7,200 $1.20 $2.00 $3.10 $2.52 $8.0 $5,560 $1.30 $1.80 $3.00 $2.25 $8.00 $9.600 $5,920 14 $1.70 $3.0 $9.84 $8.00 $10,000 $6,08 $1.50 $1.60 $3.10 105.00 $8.00 $10,240 $1.70 $1.60 $3.20 $63.00 $8.00 $10,320 $5,920 $1.90 $1.60 $3.40 $31.50 $8.00 $10,312 $5,672 $1.60 $3.50 $8.00 $2.00 $157.50 $8.00 $10,240 $5,360 $2.30 $1.60 $3.80 ($39.38) Marginal Revenue = Change in revenue / Change in Output M