Florence's Flowers is the only flower shop in a small town. Florence (the owner) has realised...

Transcribed Image Text:

Florence's Flowers is the only flower shop in a small town. Florence (the owner) has realised that the demand curve for people buying flowers for anniversaries differs from that for people buying flowers for other occasions. The demand for flowers for anniversaries and other occasions is given by the table below. Price Per Unit $8 $7 $6 $5 $4 $3 $2 $1 Quantity Demanded (Anniversaries) 1 2 3 4 LO 5 6 7 8 How much should Florence charge for the other bouquets that do NOT say "Happy Anniversary!"? Quantity Demanded (Other) 0 0 0 Florence has decided to sell two types of flower bouquets, bouquets in a vase that says "Happy Anniversary!" and bouquets in a vase with no words. Florence can produce either type of bouquet at a marginal cost of $1.50. 2 Suppose that people buying for an anniversary will only buy the former, and those buying for other occasions will only buy the latter. To maximise her profits, what price should Florence charge bouquets that say "Happy Anniversary!"? 4 6 8 10 If Florence must charge the same price for all bouquets, how much should she charge to maximise her profits? Florence's Flowers is the only flower shop in a small town. Florence (the owner) has realised that the demand curve for people buying flowers for anniversaries differs from that for people buying flowers for other occasions. The demand for flowers for anniversaries and other occasions is given by the table below. Price Per Unit $8 $7 $6 $5 $4 $3 $2 $1 Quantity Demanded (Anniversaries) 1 2 3 4 LO 5 6 7 8 How much should Florence charge for the other bouquets that do NOT say "Happy Anniversary!"? Quantity Demanded (Other) 0 0 0 Florence has decided to sell two types of flower bouquets, bouquets in a vase that says "Happy Anniversary!" and bouquets in a vase with no words. Florence can produce either type of bouquet at a marginal cost of $1.50. 2 Suppose that people buying for an anniversary will only buy the former, and those buying for other occasions will only buy the latter. To maximise her profits, what price should Florence charge bouquets that say "Happy Anniversary!"? 4 6 8 10 If Florence must charge the same price for all bouquets, how much should she charge to maximise her profits?

Answer rating: 100% (QA)

For anniversary bouquets demand 4 at 5 MC 150 profit ... View the full answer