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
Classifying Costs as Materials, Labor, or Factory Overhead Indicate whether the following costs of Procter & Gamble (PG), a
Brrunno [24]

Answer:

Explanation:

The direct material cost is the cost which is incurred for the raw material

The direct labor cost is the cost which is incurred to pay the wages to assembly workers, the labor cost, etc

And, the factory overhead cost is the indirect cost which is required at the time of producing the product. Example - depreciation, repairs & maintenance, etc

So, the categorization is shown below:

a. Depreciation on assembly line equipment in the Mehoopany, Pennsylvania, paper products plant = factory overhead cost

b. Licensing payments for use of Disney characters on children products = factory overhead cost

c. Maintenance supplies = factory overhead cost

d. Packaging materials = direct material cost

e. Paper used in bath tissue  = direct material cost

f. Plant manager salary for the Iowa City, Iowa, plant = factory overhead cost

g. Resins for body wash products =  direct material cost

h. Salary of process engineers =  factory overhead cost

i. Scents and fragrances used in making soaps and detergents  = direct material cost

j. Wages of production line employees at the Pineville, Louisiana, soap and detergent plant = direct labor cost

3 0
3 years ago
Why do internal users need financial data?
AnnyKZ [126]

Answer:

C. to invest in stocks and make business decisions

6 0
2 years ago
Suppose the Fed decides it needs to pursue an expansionary policy. Assume people hold no cash, the reserve requirement is 50 per
DENIUS [597]

Answer:

Because the current money multiplier is <u>2</u>, the Fed would <u>BUY $500,000</u> worth of bonds, <u>INCREASING</u> the monetary base and so increasing the money supply by $1 million.

Explanation:

if the Fed wants to increase the money supply by $1 million, then it would need to purchase US securities worth $500,000. The formulas used to calculate the impact of the Fed's operations are:

increase in money supply = additional funds x money multiplier

  • money multiplier = 1 / reserve ratio = 1 / 50% =  2
  • desired increase in money supply = $1 million

$1,000,000 = additional funds x 2

additional funds = $1,000,000 / 2 = $500,000

6 0
3 years ago
Shop –N-Go Systems purchased cash registers on April 1 for $6,000. If this asset has an estimated useful life of four years, wha
vichka [17]

Answer:

Depreciation= $250

Explanation:

Giving the following information:

Purchasing price= $6,000

Useful life= 4 years

Depreciation= straight-line

First, we need to calculate the annual depreciation:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= 6,000/4= 1,500

Now, the depreciation for two months:

Depreciation= (1,500/12)*2

Depreciation= $250

3 0
3 years ago
How does imports, exports and balance of trade relate​
skelet666 [1.2K]

Answer:

See explanation section

Explanation:

Export - When a country ships its domestic products (Goods and Services) to another country, after meeting the demand of the domestic people, for processing, using, and selling those, the term refers to export.

Import - When a country brings other countries' products in order to fulfill the demand of its population, it is coined as an import.

Balance of Trade - When there is a difference between the country's net monetary value of exports and imports, it is called the balance of trade. If export exceeds the import, there will be a trade surplus. On the other hand, when import exceeds the export, there will be a trade deficit.

6 0
3 years ago
Other questions:
  • The government should extend the duration of unemployment benefits to those workers who lost their jobs due to outsourcing. This
    10·1 answer
  • What is dollar velocity
    5·1 answer
  • Alpha Colony and Beta Colony both manufacture textiles and technology. Alpha Colony always produces higher quality textiles and
    13·1 answer
  • Which word doesn't belong: departments, organizations, work group, team, or task force?
    10·1 answer
  • When a manufacturer seeks a market for by-products and accepts a price that covers more than the cost of storing and delivering
    12·1 answer
  • Burton Pharmaceuticals is a fast-growing drug company based in Dallas. Top executives at Burton realize that human capital plays
    11·1 answer
  • Elaine is a secretary for a business. One day a customer comes in to file a new contract while Elaine is seated at her boss’s de
    9·1 answer
  • D'Unique Enterprise, a company that manufactures hair growth oil is preparing for its upcoming financial year (2021). D’Unique'
    5·1 answer
  • Pharma Company produces various medicines in capsule form. At the beginning of the month of March, it had 5,000 units that were
    14·1 answer
  • An organization of investors usually in the form of a limited partnership who have joined together for the purpose of pooling ca
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!