Benjamin Peter Pants $14 $8 Jacket $7 $11 The owner of the dry cleaning store has a marginal cost for each item of $6. For simplicity, assume the owner of the dry cleaner has no fixed costs. Suppose that the store owner sells the services individually. If the store owner is maximizing profits under individual-item pricing, she must be earning $ of profit weekly. Suppose now that the store owner discovers the concept of a combo: selling a whole suit cleaning (pants and jacket) for one price. The store owner can still sell each service individually. By optimally pricing the combo and the individual services, the store owner can earn

Benjamin Peter Pants $14 $8 Jacket $7 $11 The owner of the dry cleaning store has a marginal cost for each item of $6. For simplicity, assume the owner of the dry cleaner has no fixed costs. Suppose that the store owner sells the services individually. If the store owner is maximizing profits under individual-item pricing, she must be earning $ of profit weekly. Suppose now that the store owner discovers the concept of a combo: selling a whole suit cleaning (pants and jacket) for one price. The store owner can still sell each service individually. By optimally pricing the combo and the individual services, the store owner can earn

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Jane is the general manager at a new café and wants to hire a few baristas. The going rate for baristas in the area is $9.55 per hour. Jane has heard that many of the local coffee shops have high turnover with baristas “ghosting” them—simply not showing up for their shift and never coming back. Jane starts to put together an advertisement to hire baristas for $9.55 per hour, but changes her mind and lists the wage she’ll pay at $11 per hour. Why would Jane pay $9.55 per hour? What’s the rationale for paying $11 (or any wage higher than $9.55)?
am. 157.
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How would you get the profit maximizing of total profit out of the graph?I know the formula is pi = (p-atc)q
For the pizza seller whose marginal, average variable, and average total cost curves are shown in the graph below, what is the profit-maximizing level of output and how much profit will this producer earn if the price of pizza is $1.50 per slice?Instructions: In the graph below, label all three curves by clicking on the dropdown to select the appropriate label. Instructions: Enter your response as a whole number. If you are entering a negative number, be sure to include a negative sign (−). When the price is $1.50 per slice, the profit-maximizing level of output is slices per day. Instructions: Enter your response rounded to the nearest penny (two decimal places). At the profit-maximizing level of output, the producer's profit is: $ per day.
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