The owner of Tastee Cookies needs to decide whether to lease a small, medium, or large new retail outlet. She estimates that monthly profits will vary with demand for her cookies as follows: 
If she uses the Laplace criterion, what size outlet will she decide to lease?
Definitions:
Monopoly Power
The ability of a monopoly to dictate the terms of the market, including price and quantity of goods or services provided.
Free Entry
Free entry refers to a market condition where firms can enter the industry without facing any barriers or restrictions.
Long Run
Amount of time needed to make all production inputs variable.
Price Elasticity
A measure of the responsiveness of quantity demanded or supplied of a good to a change in its price, indicating how changes in price can affect consumption or production volumes.
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