Author Question: Food Fanatics caters meals where their cost of producing an extra meal is 25 . Each of their meals ... (Read 202 times)

mikaylakyoung · **on:** Jul 1, 2018

Food Fanatics caters meals where their cost of producing an extra meal is 25 . Each of their meals is standard and sells for 20 . At this rate what should the company do?
a. Produce more meals and increase their profit
b. Produce fewer meals and increase their profit
c. Not change production
d. None of the above

Question 2

A firm practicing direct price discrimination will charge a higher price to
a. Consumers known to have an elastic demand
b. All consumers
c. Consumers known to have an inelastic demand
d. Consumers known to have a unitary elastic demand