the chart below shows a production possibility schedule for a pastry shop that makes $0.50 profit per donut…

the chart below shows a production possibility schedule for a pastry shop that makes $0.50 profit per donut and $0.75 profit per bagel. choice yields the largest profit. choice quantity of donuts quantity of bagels a 600 70 b 500 140 c 500 40

the chart below shows a production possibility schedule for a pastry shop that makes $0.50 profit per donut and $0.75 profit per bagel. choice yields the largest profit. choice quantity of donuts quantity of bagels a 600 70 b 500 140 c 500 40

Answer

Explanation:

Step1: Calculate profit for Choice A

Profit for A = $0.50\times600 + 0.75\times70$ $= 300+ 52.5=$352.5$

Step2: Calculate profit for Choice B

Profit for B = $0.50\times500+0.75\times140$ $=250 + 105=$355$

Step3: Calculate profit for Choice C

Profit for C = $0.50\times500+0.75\times40$ $=250+30=$280$

Answer:

B. Option B