Microeconomics (MindTap Course List)
10th Edition
ISBN: 9781285859484
Author: William Boyes, Michael Melvin
Publisher: Cengage Learning
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Chapter 3, Problem 11E
To determine
The events using demand and supply.
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Many restaurants don’t take You simply arrive and wait your turn. If you arrive at 7:30 in the evening, you have at least an hour wait. Notwithstanding that fact, a few people arrive, speak quietly with the waiter/waitress, hand him some money, and are promptly seated. At some restaurants that do take reservations, there is a month-long wait for a Saturday evening, three weeks for a Friday evening, two weeks for Tuesday through Thursday, and virtually no wait for Sunday or Monday evening. How do you explain these events using demand and supply?
Many restaurantsdon’t take reservations. You simply arrive and wait your turn. If you arrive at 7:30 in the evening, you have at least an hour wait. Notwithstanding that fact, a few people arrive, speak quietly with the waiter/waitress, hand him some money, and are promptly seated. At some restaurants that do take reservations, there is a month-long wait fora Saturday evening, three weeks for a Friday evening, two weeks for Tuesday through Thursday, and virtually no wait for Sunday or Monday evening. How do you explain these events using demand and supply?
A company estimates that it can sell 2,000 units each month of its product if it prices each unit at $65.
However, its monthly number of sales will increase by 10 units for each $0.20 decrease in price. The
company has fixed costs of $450. The cost to make each unit is $4.50. Find the level of production that
maximizes the company's profit.
They should produce
units at a price of $
which will yield a profit of $
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