Alicia manages a hot dog stand.  She has the information on demand and costs presented in the table below.

Hot dogs sold per HourPriceTotal RevenueMarginal RevenueTotal CostMarginal Cost
0$8.00  $3.00 
17.50  7.00 
27.00  10.00 
36.50  12.50 
46.00  14.50 
55.50  16.00 
65.00  17.00 
74.50  18.50 
84.00  21.00 

Suppose Alicia’s stand is in a monopolistically competitive market.

  1. To maximize profit, how many hot dogs should Alicia sell per hour? 
  2. What is Alicia’s profit-maximizing price? 
  3. How much profit will Alicia make per hour? 
  4. What is the marginal revenue received by selling the profit-maximizing hot dog? 
  5. What is the marginal cost of selling the profit-maximizing hot dog? 

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