The figure to the right illustrates a restaurant's demand for early-bird meals (D,) and the demand for meals after 6 p.m. (D2) as well as each demand curve's corresponding marginal revenue curve. Assume the restaurant engages in price discrimination by charging different prices for early-bird meals and for meals after 20.00- 18.00- 6 p.m. 16.00- 14.00- 1.) Using the point drawing tool, indicate the profit-maximizing price and quantity for early-bird meals with price discrimination. Label this point "Early-bird." * 12.00- 2.) Using the point drawing tool, indicate the profit-maximizing price and quantity 10.00- for meals after 6 p.m. Label this point "Meals after 6." 8.00- Carefully follow the instructions above, and only draw the required objects. 6.00- 4.00- MC 2.00- MR, MR, D, D2 0.00- 100 200 300 400 500 600 700 800 900 1000 Quantity Price and cost

The figure to the right illustrates a restaurant's demand for early-bird meals (D,) and the demand for meals after 6 p.m. (D2) as well as each demand curve's corresponding marginal revenue curve. Assume the restaurant engages in price discrimination by charging different prices for early-bird meals and for meals after 20.00- 18.00- 6 p.m. 16.00- 14.00- 1.) Using the point drawing tool, indicate the profit-maximizing price and quantity for early-bird meals with price discrimination. Label this point "Early-bird." * 12.00- 2.) Using the point drawing tool, indicate the profit-maximizing price and quantity 10.00- for meals after 6 p.m. Label this point "Meals after 6." 8.00- Carefully follow the instructions above, and only draw the required objects. 6.00- 4.00- MC 2.00- MR, MR, D, D2 0.00- 100 200 300 400 500 600 700 800 900 1000 Quantity Price and cost

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter10: Monopolistic Competition And Oligoply

Section: Chapter Questions

Problem 18SQ

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