Problem II (Two-Part Tariff) SBR is the new sushi bar in the neighborhood. Their estimated marginal cost is 40 cents per

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Problem Ii Two Part Tariff Sbr Is The New Sushi Bar In The Neighborhood Their Estimated Marginal Cost Is 40 Cents Per 1 (36.04 KiB) Viewed 10 times

Problem II (Two-Part Tariff) SBR is the new sushi bar in the neighborhood. Their estimated marginal cost is 40 cents per sushi unit. SBR estimates that each consumer has a demand for sushi given by q = 10-5p, where q is number of sushi units and p is price in dollars per unit. (a) Determine the optimal price, quantity and profit. (b) SBR is considering switching to an all-you-can-eat-sushi policy. Determine the optimal price, quantity and profit again (Hint: all-you-can-eat means the price per unit is zero). (c) What is the optimal two-part tariff for sushi (i.e., a fee at the door plus a price per sushi piece)? Can you say something about profit compared with (a) and (b)?