Question
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started