Tacos R Us sells two different types of products; taco shells and taco sauce. For simplicity, assume that the marginal cost of each product is $0, so that Tacos R Us' total revenue is also its total profit.
-Refer to the table above. If Tacos R Us sells its taco shells and taco sauce as a package, what is the profit-maximizing price for the bundle?
Definitions:
Mix of Output
The combination or range of different goods or services produced by an economy or firm, reflecting its production choices and strategy.
Market Failure
A circumstance where the distribution of goods and services through an unregulated market fails to be efficient, frequently resulting in a decrease in overall social welfare.
Externalities
Expenses or advantages impacting individuals who did not decide to bear those expenses or advantages.
Public Goods
Goods or services that are available to all members of a society, typically provided by the government, with no one excluded from benefitting.
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