1.11 Say that you are a manager for Bloomin’

Brands, the restaurant company that owns Outback Steakhouse. Your research department has determined that the demand from adults is different than the demand from seniors and has estimated the demand curves shown in Figures

(a) and (b). Your estimate of the marginal cost curve appears in Figure (c).

a. To maximize your profit, how many dinners should you sell in a month?

b. What price will you charge for adult dinners?

How many dinners will you sell to adults in a month?

c. What price will you charge for senior dinners?

How many dinners will you sell to seniors in a month?

Transcribed Image Text:

(a) Adult Demand Price (dollars per dinner) $36 (b) Senior Demand Price (dollars per dinner) (c) Marginal Cost Marginal cost (dollars per dinner) $36 $32 $32 $28 $28 $24 $24 $20 $20 $16 DA $16 $12 $8 $4 2884 $12 $8 $4 MRA $36 $32 $28 $24 $20 $16 $12 284 $8 $4 MRS Ds I 0 1 2 3 4 5 6 7 8 9 10 Quantity (thousands of dinners per month) 0 1 2 3 4 5 6 7 8 9 10 0 Quantity (thousands of dinners per month) MC 1 2 3 4 5 6 7 8 9 10 Quantity (thousands of dinners per month)