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Samantha owns the only pie store in a small town. She has a marginal cost of $7 per pie. She aims to maximize profit and

Samantha owns the only pie store in a small town. She has a marginal cost of $7 per pie. She aims to maximize profit and is currently charging $38 per pie. Potential prices Samantha could charge with the corresponding quantities is outlined below:

$46/pie -> 50 pies

$42/pie -> 70 pies

$38/pie -> 84 pies

$34/pie -> 100 pies

$32/pie -> 108 pies

$30/pie -> 116 pies

Provide answers to the following questions based on the information above:

  1. Based on Samantha's current level of production of $38 per pie, what is her marginal revenue?
  2. Should Samantha increase or decrease output at the current production level to maximize profit?
  3. What price per pie should Samantha charge to maximize profit?

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