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5. (6 points) Optimal price in San Antonio You decide to charge different prices in the two locations. To do this, you decide to
5. (6 points) Optimal price in San Antonio You decide to charge different prices in the two locations. To do this, you decide to use the demand functions below to calculate separate optimal prices in the two locations. Demand Function of San Antonio =D(q)= - q +16 240 For your costs in San Antonio, you have fixed costs of $2000 per week. In addition, it costs you six dollars pg_bucgg! in variable costs (ingredients, labor etc.) A. B. C. What is your cost function in San Antonio? Using the demand function from above/ calculate the profit maximizing price and quantity. Is the new price higher or lower than the price if you do not price discriminate? What are your profits in San Antonio?
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