Just like in the lecture you get all the materials to make the lemonade for

# Just like in the lecture you get all the materials to

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Just like in the lecture, you get all the materials to make the lemonade for free so we assume that the costs of production are zero. Your goal, your objective, is to maximize profits which is the same as maximizing total revenue given the zero cost assumption.The profit (revenue) maximizing price is cents. (don’t use a decimal point in this answer!)Table for Individual Question FeedbackPoints Earned:3.0/3.0Correct Answer(s):3013.The profit maximizing quantity (in cups) of lemonade is .Table for Individual Question FeedbackPoints Earned:3.0/3.0Correct Answer(s):3014.The corresponding maximum profit is \$Table for Individual Question FeedbackPoints Earned:3.0/3.0Correct Answer(s):9, 9.0, 9.0030309 15.Suppose that there was a demand shock so that the new estimated demand function for lemonadein your neighborhood changes to:Q = 100 - 100 PA demand curve would change like this due to:A) a tax increaseB) a tax decreaseTable for Individual Question FeedbackPoints Earned:3.0/3.0Correct Answer(s):B16.The new profit (revenue) maximizing price is cents. (don’t use a decimal point in this answer!)Table for Individual Question FeedbackPoints Earned:3.0/3.0Correct Answer(s):5050 #### You've reached the end of your free preview.

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• Fall '10
• staff
• Macroeconomics, Correct Answer, Inverse demand function, Individual Question, 15,000
• • • 