Help The individual demand for a slice of pizza at Sam'sPizza is given by QD = 6 – P. Assume the marginal-cost of a slice is constant at $1 and the marginalrevenue function is 6- 2Q. What is the profit-maximizing price and quantity if Sam's sells allpizza slices at a single price? What profits percustomer will be earned?

Sam's pizza profit will calculated by reducing the revenue from the cost so here we calculate the…

The individual demand for a slice of pizza at Sam's Pizza is given by QD = 6 – P. Assume the marginal cost of a slice is constant at $1 and the marginal %3D revenue function is 6- 2Q. What is the profit- maximizing price and quantity if Sam's sells all pizza slices at a single price? What profits per customer will be earned?

The individual demand for a slice of pizza at Sam's Pizza is given by QD = 6 – P. Assume the marginal cost of a slice is constant at $1 and the marginal %3D revenue function is 6- 2Q. What is the profit- maximizing price and quantity if Sam's sells all pizza slices at a single price? What profits per customer will be earned?

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter23: Price-searcher Markets With Low Entry Barriers

Section: Chapter Questions

Problem 7CQ

See similar textbooks

Similar questions

George has been selling 5,000 T-shirts per month for $8.50. When he increased the price to $9.50, he sold only 4,000 T-shirts. Which of the following best approximates the price elasticity of demand? -2 -2.2 -2.6 -1.8 Suppose George's marginal cost is $5 per shirt. Before the price change, George's initial price markup over marginal cost was approximately . George's desired markup is . Since George's initial markup, or actual margin, was than his desired margin, raising the price was .
suppose that supply function of given by Qs=15+2P,and due tk market situation,the maximum price is 8 birr,then find the domain and range of the function?
a) what is optimal price b) What is optimal profit
A7 You are the manager of a bakery that produces and packages gourmet muffins, and you currently sell muffins in packages of 3. A consultant’s report has estimated the (inverse) demand of a typical consumer to: P = 3 − 0.5Q If your cost of producing bran muffins is C(Q) = Q: (a) What is the marginal cost of muffins? (b) Draw the demand and marginal cost on a diagram. (c) Determine the optimal number of muffins to sell in a single package. (d) What price should the firm charge for each park?
What is the maximum profit for individual pricing
Demand for Corn Flakes is: P = 24- Q. Supply of Kellogg's Corn Flakes is: P = 2+ Q. Now a generic company enters the market, selling geneen Corn Flakes for $7. Assume consumers are indifferent between generic and Kellogg's Cororlakes. How many boxes of Kellogg's (brand) Corn Flakes will sell? Enter as a value.
QUESTION FOUR Suppose the weekly demand functions for coca cola and Pepsi in Ndola are given by: Qcoke=45 +200P pepsi - 250P coke QPepsi = 45+ 200P Coke - 250PPepsi Where Qcoke and QPepsi are the number of cans coke and pepsi sell, respectively in thousands per week. Marginal cost is k0.30 per can. Calculate the optimum price level for coke and pepsi.
Francine is a a dental floss tycoon living in Montana. She faces the following demand curve for her product: Price ( in $/unit) Quantity demanded 2.50 1000 2.20 2000 1.90 3000 1.60 4000 1.30 5000 1.00 6000 .70 7000 .40 8000 Francine has been told by her brother, who is currently taking a marketing class, that if she lowers her price by one increment(for example; changing price from .70 to .40, or raising price from .40 to .70) she will capture market share and increase total revenue. All of her advisors within the company have assured Francine that her brother's advice may be correct, BUT the above demand curve will not change. Assume that Francine knows the above demand curve will not change and is also considering her brother's advice. The prices can only…
The manager of a bicycle shop has found that, at a price (in Rands) of p(x) = 150 –x/4 per bicycle, x bicycles will be sold . Answer the following:• Find an expression for the total revenue from the sale of x bicycles. (Hint: Revenue = Demand *Price. )• Find the expression for the quantity to be sold q if the demand function demand is given byp = -10q + 3200• What is the number of bicycles x, sold if the price is R40
Jackistheowneroftheonlylocalbarinasmalltown.Hesellswhiskeyin one-ounce glasses. For simplicity, let’s assume it doesn’t cost Jack anything to run his business. There are two customers, Adam and Burt who are twin brothers. Adam’s demand function is yA = 16 – 2p, and Burt’s demand function is yB = 8 – p (price is measured in dollars and quantity is measured by ounces). Jack knows their demand functions, but the problem is that he cannot tell them apart since they look exactly the same to him. To increase his profits, Jack offers the following two options that his customers can choose from: (1) You can pay $T1 up front and drink as much as you want; or (2) Pay $T2 up front and the price per ounce of whiskey will be $p. 1.a If p = 4, what is the maximal T2 that Jack can charge so that Burt is willing to come to the bar? 1.b What is the maximal T1 that Jack can charge so that Adam will choose the first pricing option?
the 9. You own a bakery and the inverse demand function for your cakes is P = 8 – 1.5Q. If cost of producing cake is C = 0.5Q, determine the profit-maximizing quantity, and the profit-maximizing price.
Consider the graph above. If the demand curve intersects the marginal & average cost curve at 100 units, calculate the profit-maximizing quantity. Profit-maximizing quantity = Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.