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Central Grocery in New Orleans Is Famous for Its Muffaletta,a

Question 115

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Central Grocery in New Orleans is famous for its muffaletta,a large round sandwich filled with deli meats and topped with a tangy olive salad.Suppose the following table represents cost and revenue data for Central Grocery.
 Muffalettas  Total  Marginal  Total  Total  Sold per  Price  Revenue  Revenue  Cost  Marginal  Cost  Day (P)(TR)(MR)(TC) Cost (MC)(ATC) Profit 0$15$0$12$1211414$1418$6$18.004213261220210.00631236102117.00154114482325.75215105062635.2024695443045.0024785623555.0021875604275.251410654252105.702550478267.8028\begin{array}{|c|c|c|c|c|c|c|c|} \hline\text { Muffalettas } &&\text { Total }&\text { Marginal }&\text { Total }&&\text { Total }&\\\text { Sold per }& \text { Price } & \text { Revenue }& \text { Revenue } &\text { Cost }&\text { Marginal }&\text { Cost }&\\\text { Day } & (P) & (T R)&(M R)&(T C)&\text { Cost (MC)}&(A T C)&\text { Profit }\\\hline 0 & \$ 15 & \$ 0 & --- & \$ 12 & --- & --- & -\$ 12 \\\hline 1 & 14 & 14 & \$ 14 & 18 & \$ 6 & \$ 18.00 & -4 \\\hline 2 & 13 & 26 & 12 & 20 & 2 & 10.00 & 6 \\\hline 3 & 12 & 36 & 10 & 21 & 1 & 7.00 & 15 \\\hline 4 & 11 & 44 & 8 & 23 & 2 & 5.75 & 21 \\\hline 5 & 10 & 50 & 6 & 26 & 3 & 5.20 & 24 \\\hline 6 & 9 & 54 & 4 & 30 & 4 & 5.00 & 24 \\\hline 7 & 8 & 56 & 2 & 35 & 5 & 5.00 & 21 \\\hline 8 & 7 & 56 & 0 & 42 & 7 & 5.25 & 14 \\\hline 10 & 6 & 54 & -2 & 52 & 10 & 5.70 & 2 \\\hline & 5 & 50 & -4 & 78 & 26 & 7.80 & -28 \\\hline\end{array}
Illustrate this data by graphing the demand,MR,MC,and ATC curves.Identify the profit-maximizing price and quantity,and show the area representing the total profit received by Central Grocery.

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