You have just been hired as manager. The previous manager was fired because the owner was not satisfied that the previous manager was maximizing profits. You are provided with the following information:
P=6.25 -1.25QD
MR = 6.25 -2.5QD
C = 0.5Q
MC = 0.5
Illustrate that the previous manager, who was charging the monopoly price per beer, was not maximizing profits as accused by the owner. That is, find an alternate pricing scheme that results in more profits per customer than the monopoly scenario.