Suppose you can produce 40 donuts an hour and a bakery can sell your donuts for...
Suppose you can produce 40 donuts an hour and a bakery can sell your donuts for $0.50 each. How much revenue per hour are you generating for the bakery? How much should the bakery pay you for making donuts, ignoring the other costs associated with running the bakery.
Homework Answers
Total revenue = 40 x 0.50 = $20, the bakery is making $20 every hour by selling 40 donuts in the market.
the bakery should pay $20 If we ignore the cost of running the bakery in the market.
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