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

question 1

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. What price should Peter charge per double scoop ice cream cone to maximize his profit?

• A)$5.60
• B)$4.40
• C)$3.20
• D)$2.40

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Definitions:

Prospector Strategy

A business strategy focused on innovation and the development of new markets or products, often involving higher risks and rewards.

Short Life Cycle

Refers to products or technologies that have a brief period of relevance or usefulness before becoming obsolete.

Highly Skilled

Possessing advanced levels of expertise, often acquired through extensive training and experience in a specific field.

Strategic Framework

A structured plan outlining how an organization intends to achieve its goals and objectives.