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Question
Central Grocery in New Orleans is famous for its muffaletta, a large round sandwich filled with deli meats and topped with a tangy olive salad. Suppose the following table represents cost and revenue data for Central Grocery.| Muffalettas Sold per Day | Price (P) | Total Revenue (TR) | Marginal Revenue (MR) | Total Cost (TC) | Marginal Cost (MC) | Average Total Cost (ATC) | Profit |
| 0 | $15 | $0 | --- | $12 | --- | --- | -$12 |
| 1 | 14 | 14 | $14 | 18 | $6 | $18.00 | -4 |
| 2 | 13 | 26 | 12 | 20 | 2 | 10.00 | 6 |
| 3 | 12 | 36 | 10 | 21 | 1 | 7.00 | 15 |
| 4 | 11 | 44 | 8 | 23 | 2 | 5.75 | 21 |
| 5 | 10 | 50 | 6 | 26 | 3 | 5.20 | 24 |
| 6 | 9 | 54 | 4 | 30 | 4 | 5.00 | 24 |
| 7 | 8 | 56 | 2 | 35 | 5 | 5.00 | 21 |
| 8 | 7 | 56 | 0 | 42 | 7 | 5.25 | 14 |
| 9 | 6 | 54 | -2 | 52 | 10 | 5.70 | 2 |
| 10 | 5 | 50 | -4 | 78 | 16 | 7.80 | -28 |
Illustrate this data by graphing the demand, MR, MC, and ATC curves. Identify the profit-maximizing price and quantity, and show the area representing the total profit received by Central Grocery.
Answer
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