I run a burger joint.

9. I run a burger joint. My marginal cost per burger is $1, and all of my customers share exactly the sameinverse demand function, which is p = 11 − 2x, where p is the price and x is the number of burgersthey consume. I realize that instead of charging a uniform price for each burger, I can increase myprofits by offering each consumer an all-or-nothing deal. Which option brings me the most profit?

(a) 4 burgers for a total price of $20(b) 3 burgers for a total price of $10(c) 5 burgers for a total price of $30(d) 6 burgers for a total price of $40

10. Magnet Communications provides both cable TV and internet services. It has two types of customers:old folks value cable at $50 (per month) and internet service at $10, while young folks value cable at$30 and the internet at $50. Assuming that there are equal numbers of old folks and young folks, whichof these pricing schemes will earn the most revenue for the company?

(a) Just cable = $50, just internet = $50, both = $70(b) Just cable = $40, just internet = $40, both = $45(c) Just cable = $30, just internet = $50, both = $70(d) Just cable = $50, just internet = $40, both = $80