Question

Suppose Sarah owns a small company that makes wedding cakes. The accompanying table shows how Sarah’s total cost varies depending on the number of wedding cakes she makes each day. Number of Cakes Per Day Total Cost Per Day 0 $ 100 1 $ 180 2 $ 220 3 $ 300 4 $ 400 5 $ 520 6 $ 660 If the market for wedding cakes is perfectly competitive, and wedding cakes sell for $95 each, then Sarah should produce ______ cakes per day. Select one: a. 5 b. 3 c. 0 d. 6

Name: suppose sarah owns a small company that makes wedding cakes the accompanying table shows how sarahs total cost varies depending on the number of wedding cakes she makes each day number of cakes per da
Uploaded: 2024-08-02T16:22:41-08:00
Duration: 2 min 59 s
Channel: Ronald Prasad
Description: suppose sarah owns a small company that makes wedding cakes the accompanying table shows how sarahs total cost varies depending on the number of wedding cakes she makes each day number of cakes per da

          Suppose Sarah owns a small company that makes wedding cakes. The accompanying table shows how Sarah’s total cost varies depending on the number of wedding cakes she makes each day.

Number of Cakes Per Day	Total Cost Per Day
0	$ 100
1	$ 180
2	$ 220
3	$ 300
4	$ 400
5	$ 520
6	$ 660
If the market for wedding cakes is perfectly competitive, and wedding cakes sell for $95 each, then Sarah should produce ______ cakes per day.

Select one:
a. 5
b. 3
c. 0
d. 6

Added by Daniel P.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Ronald Prasad

08/02/2024

Step 1

The Marginal Cost is the change in total cost when one more unit is produced. \[ \begin{array}{c|c|c} \text{Number of Cakes Per Day} & \text{Total Cost Per Day} & \text{Marginal Cost (MC)} \\ \hline 0 & \$100 & - \\ 1 & \$180 & \$180 - \$100 = \$80 \\ 2 & \$220 & Show more…

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Suppose Sarah owns a small company that makes wedding cakes. The accompanying table shows how Sarah’s total cost varies depending on the number of wedding cakes she makes each day. Number of Cakes Per Day Total Cost Per Day 0 $ 100 1 $ 180 2 $ 220 3 $ 300 4 $ 400 5 $ 520 6 $ 660 If the market for wedding cakes is perfectly competitive, and wedding cakes sell for $95 each, then Sarah should produce ______ cakes per day. Select one: a. 5 b. 3 c. 0 d. 6