UCSB
May 13, 2012, 07:08 PM
Hi guys, just discovered this site. Hope to be helpful to some students in the future :)
One downtown bar serves "Gaucho Gasoline," loved by UCSB students. The profit-maximizing owner of the bar knows that any given student has demand for Gaucho Gasoline shots given by p = 10 - q and non-students have demand p = 4-2q. The owner decides to sell shots in package because she can't distinguish students from non. She offers a large pack of 10 shots and small package of 2. If her MC = 2, what is the maximum price she can charge for the two packages if she wants non-students to by the small package and students to buy the large?
One downtown bar serves "Gaucho Gasoline," loved by UCSB students. The profit-maximizing owner of the bar knows that any given student has demand for Gaucho Gasoline shots given by p = 10 - q and non-students have demand p = 4-2q. The owner decides to sell shots in package because she can't distinguish students from non. She offers a large pack of 10 shots and small package of 2. If her MC = 2, what is the maximum price she can charge for the two packages if she wants non-students to by the small package and students to buy the large?