Crusty Cakes Sells Donuts in Eastown and Westown

question 25

Multiple Choice

Crusty Cakes sells donuts in Eastown and Westown.Its total costs are given by TC = 10(Q_E + Q_W) .The demand in each neighborhood is given by Q_E = 100 - 2P_E and Q_W = 100 - P_W .If Crusty price discriminates between the two neighborhoods,how much are its maximized profits?

• A) $850.
• B) $1,200.
• C) $2,475.
• D) $2,825.
• E) $3,250.

---

Definitions:

Failure to File

Failure to File is the penalty incurred for not submitting a required tax return or document by the due date, which can result in fines and interest charges.

Tax Shown

The amount of tax displayed on a taxpayer's return or assessed as due by the IRS.

25%

A percentage often referred to in financial contexts, such as a tax bracket, rate of return on investment, or portion of an entity.

Social Security

A government system that provides financial assistance to people with an inadequate or no income, particularly in retirement, disability, or survivorship.