What quantity will the customer demand at market price find

Assignment Help Microeconomics
Reference no: EM13390980

The individual demand for a slice of pizza is given by QD = 6 - P. Assume the marginal cost of a slice of pizza is constant at $1.00 and the marginal revenue (MR) function is 6 - 2Q.

a. What is the profit-maximizing price and quantity if the seller sells all slices at a single price?

b. Suppose that the seller decides to sell pizza at cost and charge a fixed price for this option. What quantity will a customer demand at the market price? What is the maximum fixed price the seller can charge for this option? Discuss the value of this seller's pricing strategy.

Reference no: EM13390980

Questions Cloud

Which of the given is an element which addresses thenbsp : 1 which of the following is considered an organizational blueprint which prescribes the quantity and time frame for
Prepare a revised balance sheet given the available : bruno company has decided to expand its operations. the bookkeeper recently completed the balance sheet presented below
What are the different levels of market segmentation : what are the different levels of market segmentation? synthesize the segmentation strategies that manufacturers of
Which of the given is considered as a main process flow : 1.which of the following is considered a major process flow structure?lead timefabricationlean
What quantity will the customer demand at market price find : the individual demand for a slice of pizza is given by qd 6 - p. assume the marginal cost of a slice of pizza is
Iggies used cars will sell you a 2002 suzuki aerio for 3000 : iggies used cars will sell you a 2002 suzuki aerio for 3000 with no money down. you agree to make weekly payments of 40
Assignment business ethics robert nardelli was heavily : assignment business ethics robert nardelli was heavily criticized for his leadership style and methods he used during
Suppose that spending 80 on advertising will attract 100 : a monopolist has two types of customers. there are 100 of type a who will each pay up to 10 for a single unit of the
Determine the role of a quality control department in : discuss the followingq1. what are tqm and iso?q2. how might tqm and iso be used to improve an organization?q3. what are

Reviews

Write a Review

Microeconomics Questions & Answers

  Profit maximizing in market for air travel

Formerly, market for air travel in Europe was highly regulated. Entry of new airlines was severely restricted, and air fares were set by regulation.

  Explain the fourth factor of production

Jean-Baptiste Say argued that entrepreneurs should be called the fourth factor of production because they organize the other factors and make things happen or else.

  1 this christmas bobo can either go on a vegas vacation v

1 this christmas bobo can either go on a vegas vacation v go on a road trip r or study economics e.nbsp he can also

  Profit-maximization long-run supply curve

Using the firms marginal cost curve, compute the profit-maximization long-run supply curve for typical retailer. Compute the average total cost curve for the typical gasoline retailer, and determine that average total cost are less than price at the..

  Concept for regulating depository financial institutions

The free market is the best regulator of business." Explain why United States public has not accepted this idea for regulating depository financial institutions.

  How to determine last deposit

$3500 is deposited every year with 6% interest each year. 38 equal deposits are made. How much money can be withdrawn in 20 equal payments,beginning one year after the last deposit?

  Summarize one or more key aspects of the federal health

summarize one or more key aspects of the federal health reform legislation enacted in 2010 that relate to improving

  Why the people decide to go for the default option

Behavioral economists believe that people do not always act in ways the traditional economic framework suggests they should which of the following are examples of this? check all that apply (why) 1. Some people treat $100 they earn differently fro..

  What is the effect of the new technology on the society

the effect of new technology on consumers is that it makes life easier for society. Cell phones have become miniature computers that can do just about anything we want now. Our cell phone for the past few years have a lot more processing power tha..

  Toms pizza sells for 500 ea and serves an average of 425

toms pizza sells for 5.00 ea and serves an average of 425 customers per week. during a recent sale tom lowered the

  How did the market structure in which the firm competes

How did the market structure in which the firm competes affect the firm’s decision-making? If the market structure was not a factor, how do you believe it should have been incorporated into the strategic decision-making process?

  Who has a comparative advantage in producing wine

Who has a comparative advantage in producing wine and who has a comparative advantage in producing schnitzel?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd