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.
• Now repeat the previous steps but with the $15 fixed costs calculations.
• Compare the results.

Now assume you have a monopoly with your cookies with the following demand curve: $10 per dozen for one dozen, $9 per dozen for two dozen, $8 per dozen for three dozen, $7 per dozen for four dozen, $6 per dozen for five dozen, $5 per dozen for six dozen, $4 per dozen for seven dozen, $3 per dozen for eight dozen, $2 per dozen for nine dozen, and $1 per dozen for ten dozen. Start with the costs calculated with the $30 fixed costs.

• Calculate the profit-maximizing quantity of dozens of cookies for your cookies.
• Calculate the level of profit earned at that level of production.
• Now repeat the previous steps but with the $15 fixed costs calculations.
• Compare the monopoly results.

Bring all your results together.

• Compare the perfect competition and monopoly results.