Denny' faces a demand curve for its classic
breakfast in which there are an equal number of potential buyers at every US$0.20
price point between US$8.00 and US$6.00. If the marginal cost is US$6.35, what
price maximizes profits?
Denny's notices that at this price the unserved portion of demand are all senior
customers. If Denny's offered a senior discount, how much should it be?