A cupcake store is located in a mall and is the only cupcake store in that mall

Scenario 1 (length: as needed)
A cupcake store is located in a mall and is the only cupcake store in that mall.  The demand schedule for cupcakes (per dozen) is given in the table below.  If the marginal cost to produce a dozen cupcakes is $4 per unit, how many units should the firm produce? 

Solution

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