Question
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
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? $ _________________
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