Scenario 16-1
Venya operates an ice cream shop in the center of Fairfield. He sells several unusual flavors of organic, homemade ice cream so he has a monopoly over his own ice cream, though he competes with many other firms selling ice cream in Fairfield for the same customers. Venya's demand and cost values for sales per day are given in the following table. (Everyone who purchases Venya's ice cream buys a double scoop cone because it's so delicious.)

-Refer to Scenario 16-1. How many double scoop ice cream cones should Venya sell per day to maximize his profit?

Question

Scenario 16-1
Venya operates an ice cream shop in the center of Fairfield. He sells several unusual flavors of organic, homemade ice cream so he has a monopoly over his own ice cream, though he competes with many other firms selling ice cream in Fairfield for the same customers. Venya's demand and cost values for sales per day are given in the following table. (Everyone who purchases Venya's ice cream buys a double scoop cone because it's so delicious.)
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-Refer to Scenario 16-1. How many double scoop ice cream cones should Venya sell per day to maximize his profit?

Quizplus · Accepted Answer

Venya's profit is maximized when he sells 60 double scoop ice cream cones per day. This is because the marginal profit from selling the 60th cone is equal to the marginal cost of producing the cone.

Scenario 16-1 Venya Operates an Ice Cream Shop in the Center of Center