The table below show the willingness to pay for a chicken nuggets and fries. The MC of Nuggets and Fries is zero. If Nuggets and Fries are sold separately, what is the price of each that maximizes profit? Chicken Nuggets Fries Type I 6 2 Type II 3 5 Type III 5.50 0 Price of Nuggets = 3 Price of Fries = 5 Price of Nuggets = 5.50 Price of Fries = 5 Price of Nuggets = 3 Price of Fries = 2 Price of Nuggets = 5.50 Price of Fries = 2
The table below show the willingness to pay for a chicken nuggets and fries. The MC of Nuggets and Fries is zero. If Nuggets and Fries are sold separately, what is the price of each that maximizes profit? Chicken Nuggets Fries Type I 6 2 Type II 3 5 Type III 5.50 0 Price of Nuggets = 3 Price of Fries = 5 Price of Nuggets = 5.50 Price of Fries = 5 Price of Nuggets = 3 Price of Fries = 2 Price of Nuggets = 5.50 Price of Fries = 2
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The table below show the willingness to pay for a chicken nuggets and fries. The MC of Nuggets and Fries is zero. If Nuggets and Fries are sold separately, what is the price of each that
maximizes profit?
Chicken Nuggets
Fries
Type I
6
2
Type II
3
5
Type III
5.50
0
Price of Nuggets = 3
Price of Fries = 5
Price of Nuggets = 5.50
Price of Fries = 5
Price of Nuggets = 3
Price of Fries = 2
Price of Nuggets = 5.50
Price of Fries = 2
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