which is the correct answer Elaine makes delicious cupcakes

which is the correct answer ????

Elaine makes delicious cupcakes that she mails to customers across the country. Her cupcakes are so delicious that she has a great degree of pricing power. Her customers have identical demands for cupcakes. A representative customer\'s demand is shown in the diagram below. Elaine can make a cupcake for a constant marginal and average total cost of $0.50.

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Suppose that Elaine decides to offer a quantity discount according to the following terms: the first 10 cupcakes can be bought for $1.50 each; any cupcake over 10 will be offered at a discount price. How many cupcakes will each customer order at the discounted price? How much do Elaine\'s profits increase?

which is the correct answer ????

5 additional cupcakes; profit increases by $2.50
5 additional cupcakes; profit increases by $5.00
5 additional cupcakes; profit increases by $1.25
10 additional cupcakes; profit increases by $5.00

Solution

5 Cupcakes will each customer order at $1.75 discounted price .and will get profit of $ 1.25 .

which is the correct answer ???? Elaine makes delicious cupcakes that she mails to customers across the country. Her cupcakes are so delicious that she has a gr

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