Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose there is only 1 pizzeria in Smalltownsville and it is therefore a monopolist. The pizzeria has no fixed costs and a constant marginal cost

Suppose there is only 1 pizzeria in Smalltownsville and it is therefore a monopolist. The pizzeria has no fixed costs and a constant marginal cost equal to $3 per pepperoni pizza. It faces the following demand schedule:

Price per unit $42 $38 $32 $30 $26 $20 $16 $12

Quantity demanded 1 2 3 4 5 6 7 8

a) The pizzeria's marginal revenue (in $) for the third pizza is ______ (please input only a number, no dollar signs or other symbols)

b) The profit-maximising price for this pizzeria is $_______(please input only a number, no dollar signs or other symbols)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Estimating

Authors: Rodney D. Stewart

2nd Edition

0471857076, 978-0471857075

More Books

Students also viewed these Accounting questions