The rm is currently producing (and selling) 40 units (lots of 1000) per month. assuming the rm wants to maximize its current period prots (revenues minus costs), should the rm decrease, increase, or maintain production? provide reasoning that relies on \thinking like an economist" by focusing on marginal revenue and marginal costs. apply this same reasoning to determine the optimal (i. e., prot maximizing) quantity.

The school cafeteria can make pizza for approximately $0.30 a slice. the cost of kitchen use and cafeteria staff runs about $200 per day. the pizza den nearby will deliver whole pizzas for $9.00 each. the cafeteria staff cuts the pizza into eight slices and serves them in the usual cafeteria line. with no cooking duties, the staff can be reduced by half, for a fixed cost of $75 per day. should the school cafeteria make or buy its pizzas?