Ciabatta Bread Sold Price P Total Cos TC 200 550 500 800 100

Ciabatta Bread Sold Price (P) Total Cos (TC) $2.00 5.50 5.00 8.00 10.00 4.00 11.50 3.50 12.50 13.00 2.5014.00 16.00 Per Hour () $6.00 5.50 4.50 3.00 200 a. To maximize profits, Maria should sell loaves of ciabatta bread per hour. (Enter your response as an integer) Maria should charge a price of s Enter your response rounded to two decimal places) Maria\'s maximum profit is S(Enter your response rounded to two decimal places,) b. The marginal cost when selling the profit-maximizing number of loaves of ciabatta bread is Enter your answer in each of the answer boxes revenue when selling the profit-maximizing number of loaves of ciabatta bread is $(Enter your response rounded to two decimal places,) T SEnter your response rounded to two decimal places)

Solution

Following is the required table -

(a)

Maria will maximize profit when she sell that quantity of ciabatta bread corresponding to which MR equals MC.

MR equals MC corresponding to 6 loaves of ciabatta bread per hour.

So,

To maximize profits, Maria should sell 6 loaves of ciabatta bread per hour.

Maria should charge a price of $3.00

Maria\'s maximum profit is $5.00

(b)

The marginal revenue when selling the profit-maximizing number of loaves of ciabatta bread is $0.50.

The marginal cost when selling the profit-maximizing number of loaves of ciabatta bread is $0.50.

Q	P	TR	MR	TC	MC	Profit (TR - TC)
0	6	0	-	2	2	-2
1	5.50	5.50	5.50	5.50	3.50	0
2	5	10	4.50	8	2.50	2
3	4.50	13.50	3.50	10	2	3.50
4	4	16	2.50	11.50	1.50	4.50
5	3.50	17.50	1.50	12.50	1	5
6	3	18	0.50	13	0.50	5
7	2.50	17.50	-0.50	14	1	3.50
8	2	16	-1.50	16	2	0