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Sarapan Sereal company is the only company engaged in cereal foods existed. If Sarapan Sereal company sets a price of 8000, then the number of
Sarapan Sereal company is the only company engaged in cereal foods existed. If Sarapan Sereal company sets a price of 8000, then the number of items requested is 600. Whereas if Sarapan Sereal company sets a price of 10000, the demand will drop to 200. The marginal cost MC) of Sarapan Sereal company is the same as the average cost (AC) of 300. What is the amount of demand, price and profit from Sarapan Sereal company if it determines profit-maximizing? b. It is assumed that there will be potential entrants who will enter the cereal industry. The cost of the potential entrants is MC = AC * 50. If it is assumed that Sarapan Sereal company is still profit-maximizing, then the residual demand for these potential entrants will be? c. If Sarapan Sereal company imposes a limit price, what is the limit price it will charge, and how much profit will Sarapan Sereal company get
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