Maria manages a bakery that specializes in ciabatta bread, and she has the following information on the bakery's demand and costs:
| Ciabatta Bread Sold per Hour(Q) |
Price(P) |
Total Cost (TC) |
| 0 |
$6.00 |
$3.00 |
| 1 |
5.5 |
7 |
| 2 |
5 |
10 |
| 3 |
4.5 |
12.5 |
| 4 |
4 |
14.5 |
| 5 |
3.5 |
16 |
| 6 |
3 |
17 |
| 7 |
2.5 |
18.5 |
| 8 |
2 |
21 |
a. To maximize profit, how many loaves of ciabatta bread should Maria sell per hour, what price should she charge, and how much profit will she make?
b. What is the marginal revenue Maria receives from selling the profit-maximizing quantity of ciabatta bread? What is the marginal cost of producing the profit-maximizing quantity of ciabatta bread?