Table 13-14
The following table presents cost and revenue information for Bob's bakery production and sales.

-Refer to Table 13-14.Suppose that due to a decrease in the market demand for bread the market price of bread drops to $2.75.At this new price,if Bob produces and sells the profit-maximizing quantity,how much profit will he earn?

Question

Table 13-14
The following table presents cost and revenue information for Bob's bakery production and sales.
 
-Refer to Table 13-14.Suppose that due to a decrease in the market demand for bread the market price of bread drops to $2.75.At this new price,if Bob produces and sells the profit-maximizing quantity,how much profit will he earn?

Quizplus · Accepted Answer

Bob's profit-maximizing quantity is 100 loaves of bread. At a price of $2.75 per loaf, Bob's total revenue is $275. His total cost is $250, so his profit is $25.

Table 13-14 The Following Table Presents Cost and Revenue Information for Bob's