A Baker Wants to Establish a Pie Factory

question 60

Multiple Choice

A baker wants to establish a pie factory. The cost of leasing the factory is $1,000 per day. The profit maximizing quantity of pies is 1,000 pies a day. Each pie sells for $3 and costs only $2.10 to make. Which of the following is a correct conclusion based on this data?

• A) The baker will enjoy profits of $900 per day.
• B) The baker should not enter the industry.
• C) At the profit-maximizing quantity, the baker's producer surplus is -$200.
• D) The baker will enjoy profits of $3,000 per day.

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Definitions:

Medication Administration Record

A document used in healthcare settings to record all drugs administered to a patient, including dosage, route, time, and the person who administered the medication.

Standard Dose

A commonly prescribed or administered amount of a medication or vaccine, considered effective for the general population without the need for individual adjustments.

Bitter-Tasting Oral Medication

Medicines taken by mouth that have a primarily bitter flavor, often challenging for patient compliance.

4-Year-Old

Refers to a child who is four years old, a developmental stage characterized by increased independence, imagination, and motor skills development.