Instructions: Enter your answers as a whole number.a. Suppose the firm has the ability to be a price maker. What is the profit-maximizing level of output and price?The firm should charge $1and will sellmeals.b. What will be the firm's profit if the profit-maximizing level of output is produced? A local restaurant offers an all-you-can-eat buffet. The graph shows the marginal revenue and demand curves for two segments of themarket: average consumers and senior citizens.Costs and Revenues (dollars)2421181512O630Market for All-You-Can-Eat BuffetAverage Consumers5MC ATC(50, 15)MR₂D₂10 15 20 25 30 35 40 45 50Quantity (meals)

Profit maximisation output means the amount of output that yields maximum profit when produced. It…

Instructions: Enter your answers as a whole number. a. Suppose the firm has the ability to be a price maker. What is the profit-maximizing level of output and price? The firm should charge $[ and will sell meals. b. What will be the firm's profit if the profit-maximizing level of output is produced?

Instructions: Enter your answers as a whole number. a. Suppose the firm has the ability to be a price maker. What is the profit-maximizing level of output and price? The firm should charge $[ and will sell meals. b. What will be the firm's profit if the profit-maximizing level of output is produced?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter6: Elasticities

Section: Chapter Questions

Problem 12P

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