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Suppose that the average daily demand for dinners at Paradise Grille is as follows: Demand for dinners by senior citizens: P = 50 -
Suppose that the average daily demand for dinners at Paradise Grille is as follows: Demand for dinners by senior citizens: P = 50 - 0.5Q Demand for dinners by others: P = 100 - Q Marginal cost of a dinner: MC = 10 in both cases What is the profit-maximizing price for a dinner sold to a senior citizen? Answer in the form XXX (no dollar sign). $ Question 6 What is the profit-maximizing price for a dinner sold to others? Answer in the form XXX (no dollar sign). $ Translate these answers into real-world business terms: If you owned this restaurant, what "senior citizen discount" would you be offering, in percent? Answer in the form XXX (no percent sign). % Question 8 Ignoring fixed costs, what would be the total profit earned by this restaurant per day? Answer in the form XX,XXX (no dollar sign, but use a comma). 1 p
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