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What price maximizes profits

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Question 1: The Doug's Delicious Diner faces a demand curve for its daily special in which there are an equal number of potential buyers at every $0.20 price point between $8.00 and $6.00. If the marginal cost is $6.35, what price maximizes profits?

Question 2: Doug notices that at this price the unserved portion of demand are all senior citizens. If it offered a senior discount, how much should it be?

Reference no: EM132516288

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