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Answer to Question #71794 in Microeconomics for Olivia
Question #71794
It costs you about $3 to produce a pizza.
Last week you sold 500 pizzas for $12 each.
This week you raised your price and sold 300 pizzas for $16 each.
What price should you be charging? (round to the nearest penny)
Last week you sold 500 pizzas for $12 each.
This week you raised your price and sold 300 pizzas for $16 each.
What price should you be charging? (round to the nearest penny)
Expert's answer
500=a*12+b
300=a*16+b
200=-4a
a=-50
b=1100
Q=-50P+1100
P=0.02Q+22
TR=P*Q=-0.02Q*Q+22Q
MR=-0.04Q+22
3=-0.04Q+22
Q=475
P=12.5
300=a*16+b
200=-4a
a=-50
b=1100
Q=-50P+1100
P=0.02Q+22
TR=P*Q=-0.02Q*Q+22Q
MR=-0.04Q+22
3=-0.04Q+22
Q=475
P=12.5
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Imagine you've started a new pizza restaurant. It costs you about $5 to produce a pizza. Last week you sold 500 pizzas for $10 each. This week you raised your price and sold 150 pizzas for $16 each. What price should you be charging? (round to the nearest penny)
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