Shell has over 13,000 gas stations in the United States. In addition to gasoline, the gas stations

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Question:

Shell has over 13,000 gas stations in the United States. In addition to gasoline, the gas stations also sell convenience items, such as snacks, non-alcoholic beverages, wine, beer, and hot food. Suppose you work for a gas station and your boss asks you to develop a pricing strategy for bottled local wine. The demand function is = 100 - 4, where is the monthly quantity demanded of the bottled wine and is the price of the bottled wine. The marginal cost per bottle of wine is $5. Please see the attached Excel file.Complete the following tasks: 1) (Calculating) In the worksheet of the provided Excel file, enter formulas in columns A, and C to calculate Q (quantity demanded) and MR (marginal revenue). Please round your results to one decimal place. Derive the inverse demand function and the MR function from the inverse demand function. (1.5 points) 2) (Graphing) In the worksheet, insert an X Y chart with smooth lines that depicts the demand curve, the MR curve, and the MC curve, in which Q is on the horizontal axis and P, MR, and MC are on the vertical axis. The graph should have axis titles (you can click the "+" menu on the upper right corner of the graph to add the axis titles). Also, format the horizontal axis and the vertical axis and set their major units as 5.0 (this will help you answer the next question). (1.5 point) 3) (Answering) Looking at the graph, answer the following questions.

a) Suppose you have a superpower of being able to read the minds of other people so that you know the maximum price each customer is willing and able to pay for each bottle of the wine.

What are the maximum profits you can get for your gas station? (0.5 points)

B) Suppose you engage in second-degree price discrimination and charge customers $20 each for the first 20 bottles of wine and $15 for each additional bottle of wine purchased in excess of 20 bottles.

What are the profits you can get for your gas station? (0.5 points)

c) Suppose you engage in two-part pricing.

What price should you charge for each bottle of wine and how much should charge for the wine club membership fee? (0.5 points)

d) Suppose you engage in block pricing. How many bottles should you put in a package of wine and what price should you charge for the package? (0.5 points)