Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 15, Problem 2.8P
To determine
Why the company like McD offer regional variety foods or limited time foods.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Roger Clark obtains long-stem roses from Fred’s Flowers each Friday for sale to the public. Fred generally sells Roger flowers that, if left over the weekend, would likely be unsalable the next week. Hence, he is willing to give Roger a good price on his remaining long-stem roses and to take back any roses that are not sold over the weekend and give Roger partial credit for them. Roses are sold to Roger in quantities or units of one dozen each and at a price of $10 per dozen. Roger sells the roses for $15 per dozen, and any remaining unsold over the weekend can be returned to Fred at a credit of $8 per dozen. Although the number of roses remaining to be sold at the end of the week varies, Fred is willing to let Roger have as many as six dozen each weekend and supply him with fresh flowers at the same price if Roger desires more than the quantity of “old” roses that Fred has. Characterize this decision problem both in terms of the various states of nature (demands) and in terms of the…
Please answer everything in the photo.
Please help with the following question.
You are able to sell 15 gallons of ghost pepper sauce per month at a price of $200 per gallon. Re-
search shows that for every $9 reduction in price that you can expect to sell 2 more gallons of sauce each month.
How much should you charge in order to maximize monthly revenue? Round your
response to two decimal places.
Chapter 15 Solutions
Principles of Economics (12th Edition)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- In mid-2010, Saudi Arabia and Venezuela (both members of OPEC) produced an average of 8 million and 3 million barrels of oil a day, respectively. Production costs were about $20 per barrel, and the price of oil averaged $80 per barrel. Each country had the capacity to produce an extra 1 million barrels per day. At that time, it was estimated that each 1-million-barrel increase in supply would depress the average price of oil by $10. Consider the competition between Saudi Arabia and Venezuela as a game. a) Construct the payoff table. b) Do countries have a dominant strategy? c) What actions should each country take and why?arrow_forwardInternational Businesses or Multinational companies came to the scene in the latter half of the 19th Century when they spread their activities into the global economy. They were few in 1945 but their populations grew to over 9000 by 1973 and to 30000 by 1990 at a global level. In 2011, the United Nations Conference on Trade and Development (UNCTAD 2011) observed that there were over 100,000 Multinational companies controlling about 900,000 foreign affiliates. Despite this growth, international businesses in some cases use strict scrutiny of countries which they need to operate in, dependent on whether a country practices democracy or totalitarianism. Some companies find it easier to run their companies in countries practicing democracy and allergy that it is difficult to run it in totalitarian based countries and others endure economies to still operate in both types of economies. Even Nobel prize winner Amartya Sen argues that economic development is a process where countries expand…arrow_forwardHello! Just stuck on answering these questions. Explaining the answer would be greatly appreciated. Thank you. A) Suppose that MiniChirp faces a capacity constraint of 125 units: (QA + QNZ ≤ 125). What price that MiniChirp will charge in each country? B) Suppose that MiniChirp faces a capacity constraint of 20 units: (QA + QNZ ≤ 20). What is the lowest price that MiniChirp will charge in each country?arrow_forward
- A discount shoe store always runs a ’buy one, get one free (limit one free pair per customer)’ campaign. A customer asked a clerk, if he would sell her one pair for half price. The clerk answered, ”I’m sorry, I can’t do that.” but when the customer decided to leave the store, the clerk hastily offered, “However, I think I can give you a 40% discount on any pair in the store.” Assuming the consumer has $200 to spend on shoes (X) or all other goods (Y ), and that shoes cost $100 per pair: a. Illustrate the consumer’s opportunity set with the ”buy one, get one free” deal and with a 50 percent discount. b. Why was the 40 percent discount offered only after the consumer rejected the ”buy one, get one free” deal and started to leave the store? c. Why was the clerk willing to offer a ”buy one, get one free” deal, but unwilling to sell a pair of shoes for half price?arrow_forwardOn January 27, 2011, the price of Ford Motor Company stock hit an almost 10-year high at $18.79 per share. (Two years prior, in January 2009, Ford stock was trading for about a tenth of that price.) Suppose that on January 27, 2011, you owned 10,000 shares of Ford stock (a small fraction of the almost 3.8 billion shares). Suppose you offered to sell your stock for $18.85 per share, just slightly above the market price. If you ask a price of $18.75, how many shares would you sell? Should you sell your shares at $18.75 per share? Group of answer choices 10,000; Yes 10,000; No 0, Yes. 0; No.arrow_forwardYour task is to show what the profit of this firm might look like using a key economics diagram. To make graphing easier, we will consider the price of the Ozempic drug for the middle-income country Bangladesh, which is $38 (assumed the profit-maximising price). For this task, you will be required to illustrate and explain to a typical first-year undergrad student who has no economics background the profit the firm makes at $38 per month, and what has happened to profit (producer surplus), markup, consumer surplus and the output if the price was reduced from $38 to $10 per month.arrow_forward
- Identify nine common pricing methods.arrow_forwardNancy Lerner is trying to decide how to allocate her time in studying for her economics course. There are two examinations in this course. Her overall score for the course will be the minimum of her scores on the two examinations. She has decided to devote a total of 1,200 minutes to studying for these two exams, and she wants to get as high an overall score as possible. She knows that on the first examination if she doesn’t study at all, she will get a score of zero on it. For every 10 minutes that she spends studying for the first examination, she will increase her score by one point. If she doesn’t study at all for the second examination she will get a zero on it. For every 20 minutes she spends studying for the second examination, she will increase her score by one point.arrow_forwardJohnson's Household Products has a division that produces two types of toothpaste: a regular toothpaste and a whitening tooth paste. The demand equations that relate the prices, p and q (in dollars per thousand units), to the quantities demanded weekly, x and y (in units of a thousand), of the regular toothpaste and the whitening toothpaste are given by p=3000-20 x-10 yp=3000−20x−10y and q=4000-10 x-30 yq=4000−10x−30y respectively. The fixed cost attributed to the division is $20,000/week, and the cost for producing 1000 tubes of regular and 1000 tubes of whitening toothpaste is$400 and $500, respectively. a. What is the weekly total revenue function R(x, y)? b. What is the weekly total cost function C(x, y)? c. What is the weekly profit function P(x, y)? d. How many tubes of regular and whitening toothpaste should be produced weekly to maximize the division's profit? What is the maximum weekly profit?arrow_forward
- 4D Karaoke (4DK) is getting hot in Manhattan. For those who are new to the experience, 4DKaraoke comes with special 4D glasses that give you the image of an enthusiastic audience thatscreams and shouts as you sing along. You can choose your preferred audience.There is currently one 4DK bar in the Village, but two new companies have announced plansfor creating their own bars: Z-R-Us and the company you work for, GAStar. The companythat owns the technology has given one-bar licenses to these two entrants with the assurancethat they will be the only two licenses issued in Manhattan for years to come.The two entrants are currently trying to determine their best locations, which they have eachnarrowed to the Village and Midtown. If both bars are located in the Village, then each willreceive a net profit of $10m. If both bars located in midtown then GAStar gets $19m and KR-Us $21m. If GAStar locates in the Village and Z-R-Us in Midtown, then GAStar gets $22mand Z-R-Us $9m. Finally, if BAStar…arrow_forwardSuppose that Russia and Australia (the two biggest producers of diamonds) make an agreement to both keep the production of diamonds low in order to keep the price high. After reaching this agreement, each country must decide whether to follow the agreement. Suppose that they are faced with the following decision: Russia's Decision High Production Australia's Decision High Production ($40 b, $40 b) Low Production ($60 b, $30 b) Low Production ($30 b, $60 b) where cells contain (Russia's profit, Australia's profit). a. If the game is played only one time, characterize each country's best strategy. ($50 b, $50 b) b. What is the Nash equilibrium? Is the Nash equilibrium pareto efficient? Briefly explain why or why not. c. If this were an infinitely repeated game, what outcome would you expect to emerge as the equilibrium? Briefly explain.arrow_forwardHarriet McNeil, proprietor of McNeil's Auto Mall, believes that it is good business for her automobile dealership to have more customers on the lot than can be served, as she believes this creates an impression that demand for the automobiles on her lot is high. However, she also understands that if there are far more customers on the lot than can be served by her salespeople, her dealership may lose sales to customers who become frustrated and leave without making a purchase. Ms. McNeil is primarily concerned about the staffing of salespeople on her lot on Saturday mornings (8:00 a.m. to noon), which are the busiest time of the week for McNeil's Auto Mall. On Saturday mornings, an average of 6.8 customers arrive per hour. The customers arrive randomly at a constant rate throughout the morning, and a salesperson spends an average of one hour with a customer. Ms. McNeil's experience has led her to conclude that if there are two more customers on her lot than can be served at any time…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSON
Engineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education