The table below depicts the revenue for the only restaurant in a small rural town. It costs the restaurant $6.50 to prepare each meal. Use the table to answer questions. Quantity Price Total Revenue Marginal Revenue Total Costs Marginal Costs Economic Profit/Loss 0 $8.00 1 $7.50 2 $7.00 3 $6.50 4 $6.00 5 $5.50 How many meals will the restaurant produce if it can engage in perfect price discrimination? How much economic profit will the restaurant earn if they are able to charge each customer the maximum price they are willing to pay

The table below depicts the revenue for the only restaurant in a small rural town. It costs the restaurant $6.50 to prepare each meal. Use the table to answer questions. Quantity Price Total Revenue Marginal Revenue Total Costs Marginal Costs Economic Profit/Loss 0 $8.00 1 $7.50 2 $7.00 3 $6.50 4 $6.00 5 $5.50 How many meals will the restaurant produce if it can engage in perfect price discrimination? How much economic profit will the restaurant earn if they are able to charge each customer the maximum price they are willing to pay

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter11: Marketing And Distribution

Section: Chapter Questions

Problem 9AA

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Quantity	Price	Total Revenue	Marginal Revenue	Total Costs	Marginal Costs	Economic Profit/Loss
0	$8.00
1	$7.50
2	$7.00
3	$6.50
4	$6.00
5	$5.50