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Question 29 3 The manager of a pizza restaurant wants to determine prices that maximize profit. The cost function for small pizzas is C(Q) = 500 + 2Q, for any time of day. A typical customer has the following inverse demand functions for small pizzas per month: Lunch demand: P = 18 - 4Q Dinner demand: P = 32 - 5Q What is the optimal price to charge for a small pizza in each time period? O Lunch: P* = $18 Dinner: P* = $32 O Lunch: P* = $2 Dinner: P* = $2 O Lunch: P* = $10 Dinner: P* = $17 O Lunch: P* = $16 Dinner: P* = $20 Question 30 The graph below summarizes the demand and costs for a typical firm in a perfectly comp market