Central Grocery in New Orleans Is Famous for Its Muffaletta,a

Essay

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.
$\begin{array}{|c|c|c|c|c|c|c|c|} \hline\text { Muffalettas } &&\text { Total }&\text { Marginal }&\text { Total }&&\text { Total }&\\\text { Sold per }& \text { Price } & \text { Revenue }& \text { Revenue } &\text { Cost }&\text { Marginal }&\text { Cost }&\\\text { Day } & (P) & (T R)&(M R)&(T C)&\text { Cost (MC)}&(A T C)&\text { Profit }\\\hline 0 & \$ 15 & \$ 0 & --- & \$ 12 & --- & --- & -\$ 12 \\\hline 1 & 14 & 14 & \$ 14 & 18 & \$ 6 & \$ 18.00 & -4 \\\hline 2 & 13 & 26 & 12 & 20 & 2 & 10.00 & 6 \\\hline 3 & 12 & 36 & 10 & 21 & 1 & 7.00 & 15 \\\hline 4 & 11 & 44 & 8 & 23 & 2 & 5.75 & 21 \\\hline 5 & 10 & 50 & 6 & 26 & 3 & 5.20 & 24 \\\hline 6 & 9 & 54 & 4 & 30 & 4 & 5.00 & 24 \\\hline 7 & 8 & 56 & 2 & 35 & 5 & 5.00 & 21 \\\hline 8 & 7 & 56 & 0 & 42 & 7 & 5.25 & 14 \\\hline 10 & 6 & 54 & -2 & 52 & 10 & 5.70 & 2 \\\hline & 5 & 50 & -4 & 78 & 26 & 7.80 & -28 \\\hline\end{array}$
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.