Refer to the following:
The WildTimes Bar offers female patrons a lower price for a drink than male patrons. The bar will maximize profit by selling a total of 200 drinks per night. At the current prices, male customers buy 150 drinks, while female customers buy 50 drinks. The marginal revenue from the last drink sold to a male customer is $1.50, while the marginal revenue from the last drink sold to a female customer is $0.50.
-If the bar sells 151 drinks to male customers and 49 drinks to female customers instead, then
A) total revenue will decrease $0.50.
B) profit will decrease $0.50.
C) total revenue will increase $1.
D) total revenue will increase $1.50.
E) both a and b
Correct Answer:
Verified
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The WildTimes Bar offers
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