1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Arada [10]
3 years ago
8

Scenario 17-5. assume that a local restaurant sells two items, salads and steaks. the restaurant's only two customers on a parti

cular day are mr. carnivore and ms. leafygreens. mr. carnivore is willing to pay $20 for a steak and $7 for a salad. ms. leafygreens is willing to pay only $8 for a steak, but is willing to pay $12 for a salad. assume that the restaurant can provide each of these items at zero marginal cost. if the restaurant is able to use tying to price salads and steaks, what is the profit-maximizing price to charge for the "tied" good?
Business
1 answer:
rodikova [14]3 years ago
8 0

Answer: The price of the tied good is $20.

Explanation: The practice of tying is used to package products in such a way that the price of the tied (combined) good is closer to the buyers total willingness to pay for the two goods.

In this case, the total willingness to pay of Carnivore is $20+$7=$27

While, that of Leafygreens is $8+$12=$20

Thus, the producer will sell the combined good at $20 as it this price both the consumers will buy the tied good. If the producer sells it at $27, then only the Carnivore will buy the good but Leafygreens will not.

Thus, with zero marginal cost of serving additional consumer it is better for the producer to sell at $20.

You might be interested in
Sally is planning to sell her company and she prefers to obtain immediate liquidity, and the value of consideration to be fixed.
ella [17]

Answer: A cash sale

                                           

Explanation: In simple words, liquidity refers to the ability of an organisation to bear its short term expenses. For that a company must have cash or some assets that can be readily converted into cash in case of need.

Hence Sally should sell her company in cash sale as it will result in inflow of cash which will create liquidity and also the consideration will be certain with short timely payments.

Other option such as IPO or  stock for stock might result in increase in value but certainly won't give her liquidity.  

6 0
3 years ago
"Bill thought he had received the best deal on his new car. Shortly after the purchase, Bill started to notice certain disadvant
prohojiy [21]

Answer:

Cognitive dissonance

Explanation:

Cognitive dissonance is the term which occurs or happen when the tension arises among the attitudes or beliefs of the person and the decision that contradicts with those pre- existing thinking modes.

In short, it means that it occurs when a person select among the two equally unappealing or equally attractive options.

So, in this case, Bill thinks that he had received the best deal for the car, but after purchasing, he noticed the disadvantages of the car as he learned regarding the new cars. Therefore, he is experiencing the cognitive dissonance.

6 0
3 years ago
Assume that in a private, closed economy consumption is $240 billion and investment is $50 billion, both at the $280 billion lev
adell [148]

Answer:

D. unplanned increases in inventories of $10 billion will occur

Explanation:

5 0
3 years ago
The price of a stock on February 1 is $84. A trader buys 200 put options on the stock with a strike price of $90 when the option
Andrews [41]

Answer:

The net loss of the trader amounts to $1,000, which means the correct option is A

Explanation:

The payoff is computed as:

Payoff = Strike price - Option's Stock price

where

Strike price is $90

Option's Stock Price is $85

Putting the values above:

Payoff = $90 - $85

= $5 per option

The trader bought 200 options, so the payoff would be:

Payoff = Options × Price per option

= 200 × $5

= $1,000

And the option cost would be:

Option cost = Options × Option Price

= 200 × $10

= $2,000

So, there computing net loss or gain as:

Net loss or gain = Payoff - Option cost

= $1,000 - $2,000

= $1,000 ( net loss)

Therefore, the correct option is A

7 0
3 years ago
The following costs were incurred in May:
galben [10]

Answer:

the conversion cost is $58,200

Explanation:

The computation of the conversion cost is shown below:

The conversion cost is

= Direct Labor + Manufacturing Overhead

= $32,800 + $25,400

= $58,200

Hence, the conversion cost is $58,200

It is the combination of the direct labor and the manfacturing overhead

6 0
3 years ago
Other questions:
  • Select the items that describe how business investments can cause economic growth.
    9·1 answer
  • What kind of PPE should be worn operating a pit​
    14·1 answer
  • Precision Camera Services started the year with total assets of​ $120,000 and total liabilities of​ $40,000. The company is a so
    12·1 answer
  • Which statement indicates that a personal computer is a good not a service? A. It can be touched. B. It cannot be seen. C. Every
    12·1 answer
  • Depreciation calculation methods—partial year Freedom Co. purchased a new machine on July 2, 2013, at a total installed cost of
    9·1 answer
  • The Bureau of Labor Statistics produces data on unemployment based on the number of people collecting unemployment insurance. a.
    5·1 answer
  • Prior to June 30, a company has never had any treasury stock transactions. A company repurchased 100 shares of its $1 par common
    14·1 answer
  • A tool that has been __________defective will creates headache and irritation. *
    6·1 answer
  • Explain south africa's reaction to the recommendations given by the who
    13·1 answer
  • Supporters of a minimum wage argue that it can increase wage rates without causing significant unemployment in which type of lab
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!