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. How many double scoop ice cream cones should Peter sell per day to maximize his profit?
A)80
B)100
C)120
D)140

Question

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. How many double scoop ice cream cones should Peter sell per day to maximize his profit?
A)80 
B)100 
C)120 
D)140

Quizplus · Accepted Answer

Peter should sell 80 double scoop ice cream cones per day to maximize his profit. This is because at this quantity, his marginal revenue equals his marginal cost.

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