What is the value of lerner index at profit-maximizing price

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Reference no: EM131007716

Rick sells hamburgers, facing no competition the demand for his burgers is: Q=1000-2P, where Q is the quantity of burgers sold per week and P is the price of a given hamburger. Suppose Rick’s monthly cost is given by: TC= 1000+100Q A. Rick hires Jack to advise him on the best price to charge for his burgers. Wishing to Max Rick’s profit, what should Jack recommend Rick to Charge? What will be rick’s weekly profit at this price? What is the value of the Lerner index at Rick’s profit-maximizing price? B. If the town government forced rick to produce at the perfectly competitive quantity, what would be Rick’s price and quantity, as well as profit? if this is assuming that rick is the only person in the market can the charge whatever he wants for a burger..

Reference no: EM131007716

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