Problem
Suppose, at a given point in time, Sally's smoothie shack operates in a perfectly competitive market and is producing its profit-maximizing level of output. Suppose further that at this level of production its average variable cost of producing a smoothie is $2.90, average total cost is $4.00, and marginal cost is $3.60.
At her current level of production, what is.. a. Sally's average fixed cost of producing a smoothie? b. Sally's marginal revenue from selling a smoothie? c. The price of the smoothie? d. Sally's profit from selling smoothies?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.