Question
. You own and operate a dry-cleaning business. You are the only dry-cleaning service in the area and your goal is to maximize profits. You
. You own and operate a dry-cleaning business. You are the only dry-cleaning service in the area and your goal is to maximize profits. You clean a business suit for 8 customers per day, each with a reservation price shown in the table below. The total cost of cleaning each suit is $4.25.
Customer
($ per cleaning)
A
6.0
B
5.8
C
5.6
D
5.4
E
5.2
F
5.0
G
4.8
H
4.6
I
4.2
a)Find the profit-maximizing price and quantity using both conditions, and your resulting profit, if you charge a single price to clean suits.
b)Suppose consumers A, B, C and D are women and consumers E, F, G, H and I are men. If you charge a different price for cleaning suits to men and women, what will the price and quantity be for men and women?
c)What would prevent you from charging different prices to customers based on sex?
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