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Use the following information to answer the next FOUR questions: Consider a pizza restaurant that has a local monopoly in a small rural town. Suppose
Use the following information to answer the next FOUR questions: Consider a pizza restaurant that has a local monopoly in a small rural town. Suppose the restaurant faces a demand from two types of customers: adults and seniors. The demand curve for the seniors is given by Q1=30-2P1. The demand curve for the adults is given by Q2=30-P2. The monopolist produces pizza with a constant marginal cost of $4 per pizza. 15. Suppose that the pizza restaurant cannot discriminate between the two types of customers, and so it resorts to charging the same price to each type. What profit-maximizing price will it charge? $ ___________________ 16. Under the assumption that the pizza restaurant cannot discriminate between the two types of customers, which of the following figures represents the market demand curve facing the restaurant? Figure _______________
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