1) If every bar costs $.10 to produce, where is the maximum profit in pricing? 2) If for every 1,000 bars you produce the cost of production drops $.01, where is the maximum profit? 3) If an actor says that a Yum-Yum bar is his favorite and demand does up 500 bars at all prices, assuming 1 and 2 are still true, where is the maximum profit? Looking at figure 2-7 4) What could cause this change? 5) Recreate 2-5, using 2-7 as your data source 6) What would be the new answer to question number 1? Looking at figure 2-8 7) What could cause this change? 8) Where is the maximum profit on demand2s curve? 9) What would be the new answer to question number 1? Looking at figure 2-9 10) 11)
What could cause this change?
What would be the new answer to question number 1?