1. Business
  2. Economics
  3. sally owns the only cake shop in town she is...

Question: sally owns the only cake shop in town she is...

Question details

Sally owns the only cake shop in town (she is a monopolist). At a quantity of five, the marginal cost of producing one more cake is $12, while the marginal revenue from selling one more cake is $10. In order for Sally to maximize profits, should she increase or decrease output? Should she increase or decrease prices? Explain

5-10 Sentences

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution