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On Jetstar flights, passengers have to pay extra for food and drinks. Assume the only product that Jetstar sells on the plane is packets of
On Jetstar flights, passengers have to pay extra for food and drinks. Assume the only product that Jetstar sells on the plane is packets of potato chips. Each packet costs Jetstar $4 (hint: the marginal cost is constant at $4 per packet). Currently Jetstar charges $4.50 for a packet of chips. Below is a table of potential prices Jetstar could charge and the corresponding quantities.
Price ($/packet) | Quantity (packets) |
6.50 | 30 |
6.00 | 42 |
5.50 | 56 |
5.00 | 72 |
4.50 | 92 |
4.00 | 105 |
Answer the following questions:
- What is Jetstar's marginal revenue when the price is $4.50 per packet?Answer to the nearest twodecimal places.$ per packet.
- At a price of $4.50 per packet, should Jetstar decrease or increase the packets of chips sold to maximise profit? . Type D for Decrease or I for Increase.
- Calculate Jetstar's profit-maximising quantity of packets to sell. Answer to the nearest whole number (with no decimal places). packets.
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