Author Question: Food Fanatics caters meals where their cost for producing an extra meal is 20 . Each of their meals ... (Read 1306 times)

Lobcity · **on:** Jul 1, 2018

Food Fanatics caters meals where their cost for producing an extra meal is 20 . Each of their meals is standard and sells for 25 . 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 lower prices to
a. Consumers with an elastic demand
b. All consumers
c. Consumers known to have an inelastic demand
d. Consumers known to have a unitary elastic demand