Essay
-Bob's Country Bunker is the only restaurant in town that serves fried rutabaga. Bob faces the demand schedule shown in the table above.
a) What is Bob's marginal revenue from the 50th rutabaga?
b) Bob has the cost schedule shown in the table above. Draw the demand curve faced by Bob and his marginal revenue curve. Draw Bob's marginal cost curve. If Bob wants to maximize his profit, how many fried rutabagas should he sell?
c) What price will Bob charge?
d) What is Bob's economic profit?
e) Bob currently charges $3 per fried rutabaga. Is he maximizing his profit? Why or why not?
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a) When Bob sells 40 rutabagas, his tota...View Answer
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