Restaurant Pricing. Consider a restaurant that charges S20 for all you can eat and has 20 customers at this price. The slope of the demand curve is - $0.10 per meal, and the marginal cost of providing a meal is $6. Hint: The y-intercapt equals the charge plus the (abanlute value of the slope x the number of customera), and the x-intercept equals the y-intercept divided by the alope. 1.) Usu the line drawing fool to draw and label the domand ine. 2.) Use the line drawing tool to draw and label the marginal revenue line. 3.) Use the line drawing tool to draw the marginal cost line. Carefully follow the instruetions above, and only draw the required objects. The profit-maximizing quantity ismeals. (Entur your response rounded to the nearest unit.) The profit-maximizing pricu is $ (Enter your rusponse rounded to the nuarust dollar.)

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Restaurant Pricing. Consider a restaurant that charges $20 for all you can eat and has 20 customers at this price. The
slope of the domand curve is - $0.10 per meal, and the marginal cost of providing a meal is $6.
$26
$74
Hint: The y-intercept equals the charge plus the (absolute value of the slape x the number of customers), and the
x-intercept equals the y-intercept divided by the slope.
$22-
$20
$10
$16-
$14-
$12-
$10
1.) Uso the Sine drawing fool to dravw and label the demand line.
2.) Jse the line drawing tool to draw and label the marginal revenue line.
3.) Use the line drawing tool to draw the marginal cost line.
Carefully folow the instructions above, and only draw the required objects.
The profit-maximizing quantity is meals. (Enter your response rounded to the nearest unit.)
The profit-maximizing prico is $. (Entor your rusponso rounded to the noarost dollar.)
$2
20 40 60 n0 100 120 140 160 160 200 220
Quantity of meals
Transcribed Image Text:Restaurant Pricing. Consider a restaurant that charges $20 for all you can eat and has 20 customers at this price. The slope of the domand curve is - $0.10 per meal, and the marginal cost of providing a meal is $6. $26 $74 Hint: The y-intercept equals the charge plus the (absolute value of the slape x the number of customers), and the x-intercept equals the y-intercept divided by the slope. $22- $20 $10 $16- $14- $12- $10 1.) Uso the Sine drawing fool to dravw and label the demand line. 2.) Jse the line drawing tool to draw and label the marginal revenue line. 3.) Use the line drawing tool to draw the marginal cost line. Carefully folow the instructions above, and only draw the required objects. The profit-maximizing quantity is meals. (Enter your response rounded to the nearest unit.) The profit-maximizing prico is $. (Entor your rusponso rounded to the noarost dollar.) $2 20 40 60 n0 100 120 140 160 160 200 220 Quantity of meals
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