Welcome to Top Excellors!

You’ve been hired as a new man

You’ve been hired as a new man.

• You’ve been hired as a new manager for a local restaurant. While the restaurant serves manythings, they are known for their wood-fired pizza and locally-sourced beer. Since both products aregenerally purchased at the same time, we consider them as complements. Thus, if you sell a lot ofpizza, you would also expect to sell a lot of beer and vice versa.
1. Explain what pricing strategy, would you use to maximize profits. Use general terms for youranswer (high price, low price, etc)
2. Now, let’s assume you’ve estimated the following profit function:
• ∏ = (P beer) (Q beer) + (P pizza) (Q pizza) – (C beer) (Q beer) – (C pizza) (Q pizza)
• You’ve also estimated the following equations:
• Q beer = 63 – 5(P beer) + P pizza
• Q pizza = 120 – 2(P pizza) + 2(P beer)
• C beer = 2
• C pizza = 5
• What is the profit maximizing price and quantity for pizza and beer? What is your profit? Hint: Find marginal profit with respect to P beer and P pizza, then use substitution.

You’ve been hired as a new man

Why US?

100% Confidentiality

Information about customers is confidential and never disclosed to third parties.

Timely Delivery

No missed deadlines – 97% of assignments are completed in time.

Original Writing

We complete all papers from scratch. You can get a plagiarism report.

Money Back

If you are convinced that our writer has not followed your requirements, feel free to ask for a refund.