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# I run a burger joint.

9. I run a burger joint. My marginal cost per burger is \$1, and all of my customers share exactly the sameinverse demand function, which is p = 11 − 2x, where p is the price and x is the number of burgersthey consume. I realize that instead of charging a uniform price for each burger, I can increase myprofits by offering each consumer an all-or-nothing deal. Which option brings me the most profit?

(a) 4 burgers for a total price of \$20(b) 3 burgers for a total price of \$10(c) 5 burgers for a total price of \$30(d) 6 burgers for a total price of \$40

10. Magnet Communications provides both cable TV and internet services. It has two types of customers:old folks value cable at \$50 (per month) and internet service at \$10, while young folks value cable at\$30 and the internet at \$50. Assuming that there are equal numbers of old folks and young folks, whichof these pricing schemes will earn the most revenue for the company?

(a) Just cable = \$50, just internet = \$50, both = \$70(b) Just cable = \$40, just internet = \$40, both = \$45(c) Just cable = \$30, just internet = \$50, both = \$70(d) Just cable = \$50, just internet = \$40, both = \$80

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