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Suppose that Peter is the only one in town to sell pigeon pies, and the demand for pigeon pies is given by p(y) = 140
Suppose that Peter is the only one in town to sell pigeon pies, and the demand for pigeon pies is given by p(y) = 140 - y/3 where y
is the number of pies Peter sells. Also suppose that Peter can produce pies with no cost at all. Then the level of output that will maximize Peter's profit is
(a) 630
(b) 214
(c) 420
(d) 42
(e) 210
Which is the correct answer and why?
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