Stuffed Pies is a frozen calzone manufacturer. The table above summarizes Stuffed Pies' marginal revenue and marginal cost at various quality amounts.
-Refer to the table above. What is the profit- maximizing number of quality units for Stuffed Pies to produce?

Question

Quizplus · Accepted Answer

The profit-maximizing number of quality units for Stuffed Pies to produce is where marginal revenue equals marginal cost. This occurs at a quality of 9, where MR=MC and the profit per unit is $3.50. At any higher or lower quality, Stuffed Pies would not be maximizing their profits.

Stuffed Pies Is a Frozen Calzone Manufacturer