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Mazyrski [523]
3 years ago
6

To produce espressos, a coffee shop has fixed costs of 200 dollars each day and variable costs of one dollar per espresso. The n

umber of espressos that the coffee shop sells on a given day depends linearly on the price of each espresso: If the price is $1.00, then they sell 200 espressos, and if the price is $2.00, then they sell 100 espressos. What is the choice of price that will maximize their profit?

Business
1 answer:
aleksandr82 [10.1K]3 years ago
7 0

Answer

The answer and procedures of the exercise are attached in the following image.

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

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Answer:

The correct answer for the first scenario is total tax = $3, tax on consumer = $1 and tax on producer = $2.

For the second scenario, the answer will be False.

Explanation:

According to the scenario, given data is:

Price for consumer before tax = $7

Price for consumer after tax = $8

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Price producer gets after tax = $5

So, the amount of tax = Price consumer pay after tax - Price producer gets after tax.

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Burden of tax on consumer = Price after tax for consumer - price before tax for consumer

=  $8 - $7 = $1

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= $7 - $5 = $2

For the second scenario, given statement will be false because the result will be same if the tax is levied on producer or consumer.

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<span>In order to find out how much 11 pears cost we must first find out the cost of a single pear. We know 7 pears costs 12.50. If we divide the total cost, 12.50, by the total number of pears we find the price of an individual pear, 1.79. Then all we have to do is multiple 11 pears by the price of 1 pear. Our answer will be that 19.69 is the cost of 11 pears.</span>
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Answer:

The correct answer will be "Divestment strategy".

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