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Construct a demand curve from individuals who value a Chipotle burrito with values {$12, 10, 9, 8, 8, 8, 7, 7, 6, 6, 5, 4, 3, 3, 3, 2, 2, 1}. Identify the optimal single price, and the associated quantity and profit if the marginal cost of production is $2. Assume that the eight (8) individuals with the lowest values are senior citizens (and for simplicity that none of the high-valued customers are senior citizens). What price should Chipotle charge senior citizens? How much additional profit does this generate?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91722732

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