Suppose Angelica opens a small store near campus, selling beef brisket sandwiches. Use the graph below, which

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Suppose Angelica opens a small store near campus, selling beef brisket sandwiches. Use the graph below, which shows the demand and cost for Angelica's beef brisket sandwiches, to answer the following questions.
Price and cost (dollars per sandwich) MC ATC $5.50 5.00 AVC 4.50 3.00 2.00 1.75 D. Quantity sandwiches 55 110 165 per da

a. If Angelica wants to maximize profit, how many beef brisket sandwiches should she sell per day, and what price should she charge? Briefly explain your answer.
b. How much economic profit (or loss) is Angelica earning? Briefly explain.
c. Is Angelica likely to continue selling this number of beef brisket sandwiches in the long run? Briefly explain.

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Microeconomics

ISBN: 9780135952955

8th Edition

Authors: Glenn Hubbard, Anthony Patrick O Brien

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