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An entrepreneur lives between two small beach communities. Her small business sells frozen drinks at both beaches. The inverse demand for frozen drinks at the first beach is p = 20-3 The inverse demand for frozen drinks at the second beach is p=40-q. 2nd attempt Part 1 (1 point) Suppose the entrepreneur sells at the same price in both markets. If she wants to sell 40 frozen drinks, she should set a price per drink of $ Part 2 (1 point) Suppose now that the seller can sell at different prices at each beach. To maximize revenue, the seller should set a price of $ per frozen drink in the first beach community.

An entrepreneur lives between two small beach communities. Her small business sells frozen drinks at both beaches. The inverse demand for frozen drinks at the first beach is p = 20-3 The inverse demand for frozen drinks at the second beach is p=40-q. 2nd attempt Part 1 (1 point) Suppose the entrepreneur sells at the same price in both markets. If she wants to sell 40 frozen drinks, she should set a price per drink of $ Part 2 (1 point) Suppose now that the seller can sell at different prices at each beach. To maximize revenue, the seller should set a price of $ per frozen drink in the first beach community.

Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter6: Simple Pricing
Section: Chapter Questions
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An entrepreneur lives between two small beach communities. Her small business sells frozen drinks at both beaches. The inverse demand for frozen drinks at the first beach is p = 20-3 The inverse demand for frozen drinks at the second beach is p=40-q. 2nd attempt Part 1 (1 point) Suppose the entrepreneur sells at the same price in both markets. If she wants to sell 40 frozen drinks, she should set a price per drink of $ Part 2 (1 point) Suppose now that the seller can sell at different prices at each beach. To maximize revenue, the seller should set a price of $ per frozen drink in the first beach community.
Transcribed Image Text:An entrepreneur lives between two small beach communities. Her small business sells frozen drinks at both beaches. The inverse demand for frozen drinks at the first beach is p = 20-3 The inverse demand for frozen drinks at the second beach is p=40-q. 2nd attempt Part 1 (1 point) Suppose the entrepreneur sells at the same price in both markets. If she wants to sell 40 frozen drinks, she should set a price per drink of $ Part 2 (1 point) Suppose now that the seller can sell at different prices at each beach. To maximize revenue, the seller should set a price of $ per frozen drink in the first beach community.
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