Scenario 16-3 Peter Operates an Ice Cream Shop in the Center of Center

question 384

Multiple Choice

Scenario 16-3
Peter operates an ice cream shop in the center of Fairfield. He sells several unusual flavors of organic, homemade ice cream so he has a monopoly over his own ice cream, though he competes with many other firms selling ice cream in Fairfield for the same customers. Peter's demand and cost values for sales per day are given in the table below. (Everyone who purchases Peter's ice cream buys a double scoop cone because it's so delicious.)
-Refer to Scenario 16-3. How many double scoop ice cream cones should Peter sell per day to maximize his profit?

• A)80
• B)100
• C)120
• D)140

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Definitions:

Biological Clock

An internal mechanism that regulates physiological and behavioral functions on a cyclical basis, such as sleep and wakefulness.

Melatonin

A hormone produced by the pineal gland that regulates sleep and wakefulness cycles.

Adrenalin

Also known as epinephrine, a hormone and medication which increases heart rate, muscle strength, blood pressure, and sugar metabolism, often in response to stress.

Circadian Cycle

A natural, internal process that regulates the sleep-wake cycle and repeats roughly every 24 hours.