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Tong Chin Is the Manager of an Asian Restaurant Monthly Operating Costs Include $16,400 of Fixed Costs and Average

Question 43

Multiple Choice

Tong Chin is the manager of an Asian restaurant.She is considering four price levels for an all-you-can-eat buffet.Her estimate of price and quantity demanded are:  Buffet Meal Price  Meals Dem anded $17.003,200$16.003,700$15.004,000$14.004,400\begin{array}{ll}\text { Buffet Meal Price }&\text { Meals Dem anded }\\\$ 17.00 & 3,200 \\\$ 16.00 & 3,700 \\\$ 15.00 & 4,000 \\\$ 14.00 & 4,400\end{array} Monthly operating costs include $16,400 of fixed costs and average variable costs of $9.40 per meal.Which price will yield the largest monthly profit?


A) $17
B) $16
C) $15
D) $14

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