This material may consist of step-by-step explanations on how to solve a problem or examples of proper writing, including the use of citations, references, bibliographies, and formatting. This material is made available for the sole purpose of studying and learning - misuse is strictly forbidden.
For weekends the inverse demand function is as
P= 15-0.001 Q
TR = P*Q = 15Q – 0.001Q2
MR = 15 – 0.002 Q
TC = 15000+ 2Q
MC = 2
For weekends, the profit maximizing price should be at where MR= MC
15-0.002Q = 2
Price should be at P=15-0.001 (6500) = 15-6.5=$8.5
For weekdays the inverse demand function is as
P = 10-0.001Q
MR = 10-0.002Q
MC = 2...
This is only a preview of the solution. Please use the purchase button to see the entire solution