Marginal cost of producing the profit-maximizing quantity
Maria manages a bakery that specializes in ciabatta bread, ans she has the following information on the bakery’s demand and costs:
| Bread sold per hour (Q) | Price (P) | Total Cost (TC) |
| 0 | $6.00 | $3.00 |
| 1 | 5.50 | 7.00 |
| 2 | 5.00 | 10.00 |
| 3 | 4.50 | 12.50 |
| 4 | 4.00 | 14.50 |
| 5 | 3.50 | 16.00 |
| 6 | 3.00 | 17.00 |
| 7 | 2.50 | 18.50 |
| 8 | 2.00 | 21.00 |
b.) What is the marginal revenue Maria recieves from selling the profit-maximizing quantity of ciabatta bread? What is the marginal cost of producing the profit-maximizing quantity of ciabatta bread?
Solution:
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