Chapter 12 Monopolistic Competition
Had Laurie’s prepared 200 hamburgers in advance, it could have made more profit: Revenue (200 x $2.50) $500 Cost of Hamburgers (200 x $.75) (150) Gross Margin 350 General, Selling, & Administrative Expenses (90) Net Income $260 The lost profit resulting from insufficient supply is $70 per day ($260 ( $190 = $70, or $1.75 x 40 = $70). ................
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