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ICE CREAM SELLER:
Total costs= 500+( 0.5x 2000)=1500
Total rev= 2x1000=2000
Profit =500
If price = 1.50 and sells 1,200
Costs= 500+ (o.5x1200)= 1100
TR=1200x1.5=1800
Profit = 700
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ICE CREAM SELLER:
Total costs= 500+( 0.5x 2000)=1500
Total rev= 2x1000=2000
Profit =500
If price = 1.50 and sells 1,200
Costs= 500+ (o.5x1200)= 1100
TR=1200x1.5=1800
Profit = 700