If a restaurant charges seniors one price and nonseniors another price,the restaurant will apply the marginal principle

Question

Quizplus · Accepted Answer

The marginal principle states that prices should be set at the point where marginal cost equals marginal revenue. Since seniors and nonseniors have different demands, the restaurant will have to set two different prices to maximize profit. This means that the marginal principle will be applied twice, once for each group.

If a Restaurant Charges Seniors One Price and Nonseniors Another