Say that you are a manager for Bloomin' Brands, the restaurant company that owns Outback Steakhouse....

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Say that you are a manager for Bloomin' Brands, the restaurant company that owns Outback Steakhouse. Your research department has determined that the demand from adults is different than the demand from seniors and has estimated the demand curves shown in Figures (a) and (b). Your estimate of the marginal cost curve appears in Figure (c). To maximize your profit, how many dinners should you sell in a month? What price will you charge for adult dinners? How many dinners will you sell to adults in a month? What price will you charge for senior dinners? How many dinners will you sell to seniors in a month? (a) Adult Demand Price (dollars per dinner) $36 $32 $28 $24 $20 $16 $12 $8 $4 0 DA MRA 1 1 2 3 4 5 6 7 8 9 10 Quantity (thousands of dinners per month) (b) Senior Demand Price (dollars per dinner) $36 $32 $28 $24 $20 $16 $12 $8 $4 0 MRS Ds 1 2 3 4 5 6 7 8 9 10 Quantity (thousands of dinners per month) (c) Marginal Cost Marginal cost (dollars per dinner) $36 $32 $28 $24 $20 $16 $12 $8 $4- MC 0 1 2 3 4 5 6 7 8 9 10 Quantity (thousands of dinners per month) Say that you are a manager for Bloomin' Brands, the restaurant company that owns Outback Steakhouse. Your research department has determined that the demand from adults is different than the demand from seniors and has estimated the demand curves shown in Figures (a) and (b). Your estimate of the marginal cost curve appears in Figure (c). To maximize your profit, how many dinners should you sell in a month? What price will you charge for adult dinners? How many dinners will you sell to adults in a month? What price will you charge for senior dinners? How many dinners will you sell to seniors in a month? (a) Adult Demand Price (dollars per dinner) $36 $32 $28 $24 $20 $16 $12 $8 $4 0 DA MRA 1 1 2 3 4 5 6 7 8 9 10 Quantity (thousands of dinners per month) (b) Senior Demand Price (dollars per dinner) $36 $32 $28 $24 $20 $16 $12 $8 $4 0 MRS Ds 1 2 3 4 5 6 7 8 9 10 Quantity (thousands of dinners per month) (c) Marginal Cost Marginal cost (dollars per dinner) $36 $32 $28 $24 $20 $16 $12 $8 $4- MC 0 1 2 3 4 5 6 7 8 9 10 Quantity (thousands of dinners per month)

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Profit maximization is where marginal cost cuts the marginal revenue cur... View the full answer