Question
The Corner Cafe offers female customers a lower price for a coffee than male customers. The cafe will maximize profit by selling a total of
The Corner Cafe offers female customers a lower price for a coffee than male customers. The cafe will maximize profit by selling a total of 200 coffees per day. At the current prices, male customers buy 150 coffees, while female customers buy 50 coffees. The marginal revenue from the last coffee sold to a male customer is $1.50, while the marginal revenue from the last coffee sold to a female customer is $0.50. The cafe
should lower the price for male customers and raise the price for female customers.
should lower the price for female customers and raise the price for male customers.
should charge the same price regardless of gender.
is maximizing profit, and they should continue selling 150 coffees to male customers and 50 coffees to female customers.
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