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. What price should Venya charge per double scoop ice cream cone 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.)
​
​
  ​
-Refer to Scenario 16-1. What price should Venya charge per double scoop ice cream cone to maximize his profit?

Quizplus · Accepted Answer

To determine the price that maximizes profit, one would typically analyze the cost of production, demand at various price points, and the relationship between price, demand, and profit. Without the specific details from Scenario 16-1, we can't perform a precise calculation. However, the correct choice is based on the assumption that Scenario 16-1 provided information leading to $3.80 as the price that maximizes profit, possibly through a combination of cost analysis and demand forecasting.

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