When the Price of a Glass of Lemonade at a Lemonade

question 162

Multiple Choice

When the price of a glass of lemonade at a lemonade stand was $1.75,400 glasses were sold.When the price was lowered to $1.50,500 glasses were sold.Assume that the demand function is linear and that the marginal and fixed costs are $0.10 and $ 25,respectively.Find the marginal profit when 300 glasses of lemonade are sold and when 700 glasses of lemonade are sold. ​

• A) ​ ,
• B) ​ ,
• C) ​ ,
• D) ​ ,
• E) ​​ ,

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Definitions:

Demand Schedule

A grid outlining the quantities of an item or service that people are ready and able to buy across a range of prices.

Marginal Cost

The uptick in aggregate cost due to the output of an extra unit of a product or service.

Monopolist

An entity that is the sole provider of a particular product or service in a market, possessing significant market power and control over prices.

Output

The amount of goods or services produced by a person, machine, factory, or company within a certain period.