Homework Answers
a) Profit maximising output occurs at MR = MC
In this case it is Q= 25 Meals and P= $12 ( Here MR=MC)
b) Profit at Q = 25 Meals and P = $ 12 = Profit = TR - TC= 25 x 12 - 6 x 25 = $150 = Profit
c) At p =$12 , 0 meals will be bought by senior citizen consumers
d) $9 and 15 meals: for price discrimination: at this quantity the firm will maximise profit in the case of SENIOR CITIZEN CONSUMER
e) In case of Senior Citizen Consumer: P = $9, Q= 15 MEALS, Profit= TR - TC = 9 x 15 - 6 x 15 = $ 45
In case of average consumers: P = $12, Q= 25, P= $ 150
Total profit = 150 + 45= $ 195
Add Answer to:
A local restaurant offers an all-you-can-eat buffet. The graph shows the marginal revenue and demand curves...
The restaurant at the Hotel Galaxy offers two choices for breakfast: an all-you-can-eat buffet and an a la carte option, where diners can order from the menu. The buffet option has a budgeted meal price of $52. The a la carte option has a budgeted average
The restaurant at the Hotel Galaxy offers two choices for breakfast: an all-you-can-eat buffet and an a la carte option, where diners can order from the menu. The buffet option has a budgeted meal price of $52. The a la carte option has a budgeted average price of $41 for a meal. The restaurant manager expects that 40 percent of its diners will order the buffet option. The buffet option has a budgeted variable cost of $32 and the a...
The Organic Buffet offers an all-you-can-eat buffet meal for $ 34 per person. The restaurant employs...
The Organic Buffet offers an all-you-can-eat buffet meal for $ 34 per person. The restaurant employs ten salaried employees. Rent for the building, employee salaries, and other fixed costs for the restaurant are $ 118 comma 800 per month when the restaurant serves meals up to 13 comma 900 guests in that month. If the restaurant were to serve more than 13 comma 900 guests in any given month, it would need to hire two additional servers and two additional...
The Wholesome Buffet offers an all-you-can-eat buffet meal for $33 per person. The restaurant emp...
The Wholesome Buffet offers an all-you-can-eat buffet meal for $33 per person. The restaurant employs ten salaried employees. Rent for the building, employee salaries, and other fixed costs for the restaurant are $63,500 per month when the restaurant serves meals up to 13,900 guests in that month. If the restaurant were to serve more than 13,900 guests in any given month, it would need to hire two additional servers and two additional kitchen staff for an additional fixed cost of...
12. The Johnson Buffet offers an all-you-can-eat buffet meal for $28 per person. The restaurant employs...
12. The Johnson Buffet offers an all-you-can-eat buffet meal for $28 per person. The restaurant employs ten salaried employees. Rent for the building employee salaries, and other fixed costs for the restaurant are $67,500 per month when the restaurant serves meals up to 14,200 guests in that month. If the restaurant were to serve more than 14,200 guests in any given month, it would need to hire two additional servers and two additional kitchen staff for an additional fixed cost...
The graph below shows the marginal, average variable, and average total cost curves for a perfectly...
The graph below shows the marginal, average variable, and average total cost curves for a perfectly competitive firm. Refer to the graph to answer the following questions. Instructions: Indicate the profit-maximizing level of output. Enter your response as a whole number. Price and cost MC ATC AVC $40.50 36.00 30.00 MR 22.00 20.00 130 180 240 Quantity a. What is the amount of the fixed cost of production? $ b. Suppose the market price is $30 what is the firm's...
The graph below shows the marginal, average variable, and average total cost curves for a pizza...
The graph below shows the marginal, average variable, and average total cost curves for a pizza seller. Refer to the graph to answer the following questions. Instructions: Indicate the profit-maximizing level of output. Enter your response as a whole number. Cost Curves 3.50 3.25 3.00 2.75 Select Select Select 2.50 (S/slice) 2.00 W 1.75 1.50 1.25 1.00 0.75 0.50 0.25 100 200 300 400 500 600 700 800 900 Q -> Quantity (slices/day) a. What is the amount of the...
A fast-food restaurant has identified three primary groups willing to purchase its meals. However, customers are...
A fast-food restaurant has identified three primary groups willing to purchase its meals. However, customers are willing to purchase only one meal each. The table shows the total number of meals bought at three different prices. The number of consumers is the total number of buyers at each price level. Group Number of consumers Willingness to pay High 350 $5.50 Medium 500 $4 Low 750 $2 The restaurant can produce a meal with no fixed costs and a constant marginal...
A restaurant offers an "all you can eat" lunch buffet for $12. Jim has eaten three...
A restaurant offers an "all you can eat" lunch buffet for $12. Jim has eaten three servings and is trying to decide whether or not to go back for a fourth. The economic way of thinking suggests that Jim should go back for the fourth serving if and only if Oa. his marginal benefit of the additional serving is greater than zero. Ob. his marginal benefit of the additional serving is at least $3. Oc. his marginal benefit of the...
Draw the graph for a monopoly with demand, marginal revenue, and marginal cost curves. Identify the...
Draw the graph for a monopoly with demand, marginal revenue, and marginal cost curves. Identify the profit-maximizing output level (Qm) and price (Pm). Suppose the monopolist sells Qm units of output at the regular price and then puts the product on sale at a lower price, Ps. Show the new price and quantity. Identify the consumer surplus of the additional sales. What happens to the firm’s profits? Does price discrimination lead to a more efficient or less efficient outcome? Why...
Draw the graph for a monopoly with demand, marginal revenue, and marginal cost curves. Identify the...
Draw the graph for a monopoly with demand, marginal revenue, and marginal cost curves. Identify the profit-maximizing output level (Qm) and price (Pm). Suppose the monopolist sells Qm units of output at the regular price and then puts the product on sale at a lower price, Ps. Show the new price and quantity. Identify the consumer surplus of the additional sales. What happens to the firm’s profits? Does price discrimination lead to a more efficient or less efficient outcome? Why...
The Wholesome Buffet offers an all-you-can-eat buffet meal for $33 per person. The restaurant employs ten salaried employees. Rent for the building, employee salaries, and other fixed costs for the restaurant are $63,500 per month when the restaurant serves meals up to 13,900 guests in that month. If the restaurant were to serve more than 13,900 guests in any given month, it would need to hire two additional servers and two additional kitchen staff for an additional fixed cost of...
12. The Johnson Buffet offers an all-you-can-eat buffet meal for $28 per person. The restaurant employs ten salaried employees. Rent for the building employee salaries, and other fixed costs for the restaurant are $67,500 per month when the restaurant serves meals up to 14,200 guests in that month. If the restaurant were to serve more than 14,200 guests in any given month, it would need to hire two additional servers and two additional kitchen staff for an additional fixed cost...
The graph below shows the marginal, average variable, and average total cost curves for a perfectly competitive firm. Refer to the graph to answer the following questions. Instructions: Indicate the profit-maximizing level of output. Enter your response as a whole number. Price and cost MC ATC AVC $40.50 36.00 30.00 MR 22.00 20.00 130 180 240 Quantity a. What is the amount of the fixed cost of production? $ b. Suppose the market price is $30 what is the firm's...
The graph below shows the marginal, average variable, and average total cost curves for a pizza seller. Refer to the graph to answer the following questions. Instructions: Indicate the profit-maximizing level of output. Enter your response as a whole number. Cost Curves 3.50 3.25 3.00 2.75 Select Select Select 2.50 (S/slice) 2.00 W 1.75 1.50 1.25 1.00 0.75 0.50 0.25 100 200 300 400 500 600 700 800 900 Q -> Quantity (slices/day) a. What is the amount of the...
A restaurant offers an "all you can eat" lunch buffet for $12. Jim has eaten three servings and is trying to decide whether or not to go back for a fourth. The economic way of thinking suggests that Jim should go back for the fourth serving if and only if Oa. his marginal benefit of the additional serving is greater than zero. Ob. his marginal benefit of the additional serving is at least $3. Oc. his marginal benefit of the...
Most questions answered within 3 hours.
-
please don't use the p value method instead use the "5 steps of
hypothesis testing." Or...
asked 4 minutes ago -
It is said that Galileo discovered a basic principle of the
pendulum—that the period is independent...
asked 10 minutes ago -
The Cost of Equity and
Flotation Costs
Messman Manufacturing
will issue common stock to the public...
asked 16 minutes ago -
a) summarize the challenges facing New Britain today
b) identify some of its strengths
c) suggest...
asked 18 minutes ago -
**86 at 40 not 88. please show how got Tr in calculations thank
you
2) The...
asked 19 minutes ago -
McGlaun Company pays its employees every two weeks. The firm
last paid its employees on September...
asked 33 minutes ago -
You have been gifted a Mogwai as a pet and decide to do a little
online...
asked 37 minutes ago -
given the standard of 200 mg/dl and the absorbance of that
standard is 0.640. What is...
asked 40 minutes ago -
Exercise 8-51 Algo
An accounting professor is notorious for being stingy in giving
out good letter...
asked 48 minutes ago -
month
total distribution cost
level of activity (unit produced)
july
230.000
3500
august
250.000
3750
september...
asked 49 minutes ago -
A smoke detector system uses two devices, A and B. If smoke is
present, the probability...
asked 1 hour ago -
Your division head has assigned another important project to you
and your team. This project is...
asked 1 hour ago