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Z is a new restaurant in town. Their estimated marginal cost is 10 cents per unit of food. Z estimates that each consume
Posted: Wed Mar 09, 2022 8:30 am
by answerhappygod
- Z Is A New Restaurant In Town Their Estimated Marginal Cost Is 10 Cents Per Unit Of Food Z Estimates That Each Consume 1 (33.1 KiB) Viewed 43 times
Z is a new restaurant in town. Their estimated marginal cost is 10 cents per unit of food. Z estimates that each consumer has a demand for their food given by q = 20 – 10p, where q is the number of food units and p is the price in dollars per unit. 1. Determine the optimal price per food unit 2. Z now considers switching to an "all-you-can-eat" policy. This means price per unit is zero. Determine the optimal price per customer. 3. Compare profits in (1) and (2).