Dolly's Backyard BBQ is the only BBQ restaurant in town. Her profit maximizing price is $10 and serves 50 customers per day. At this quantity, her average total cost is $7 per customer. How much profit does Dolly earn per day?

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Business

Zuniga

4 November, 20:56

Dolly's Backyard BBQ is the only BBQ restaurant in town. Her profit maximizing price is $10 and serves 50 customers per day. At this quantity, her average total cost is $7 per customer. How much profit does Dolly earn per day?

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Grady Buck · Answer 1

The profit per day is $3.00. Since the maximum price is $10 and its cost is $7 per day, the profit of $3 is what Dolly earns every day. If she has 50 customers per day, she will earn $150 per day. Without any other costs incurred, the profit every day is $3 or $150 if she has 50 customers every day.