You own a property on Main Street on which a small, vacant take-out pizza stand sits.

There are other vacant take-out pizza stands in the same locale (i.e. Main Street) as well as on the less busy Side Street locale. From your market analysis, you are confident that the sites will attract the following number of pizza sales each month (based on their locale):

Main Street: 450

Side Street: 300

The market price for pizzas in the city is $7.00. You know the cost of running and maintaining a pizza stand (paid by the operator of the business of course) is fixed at $900 per month.

Jobs in another industry which pay $200.00 per month are plentiful in the city andtherefore $200.00 is the minimum profit after rent operators must achievein order for them to run a pizza stand.

Note: If any new assumptions are made, they will continue to be in effect for subsequent questions.

2(a).What is a potential operators monthly profit, before rent, at each of the two locales (Main Street and Side Street)? Explain with the help of a table.

2(b).You learn that the Side Street properties are renting for $250 per month on a month-to-month basis. Assume operators can easily (and at no cost) switch from one property to another.

Given that operators can easily setup shop at a Side Street location for $250 per month, how much rent are you able to collect for your Main Street property? Why? Show your work with the help of a table.