ECON MICRO
5th Edition
ISBN: 9781337000536
Author: William A. McEachern
Publisher: Cengage Learning
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Chapter 6, Problem 3.10P
To determine
The way we can say that a rider has derived his
Consumer surplus:
It is the difference between the
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You can charge higher prices if the parents think these are valuable by providing different services such as extended hours, healthy lunches, and smaller staff-to-child ratios. But pushing for prices much higher won’t make sense unless parents think the added value is worth the price hike. You should research your local parents to find out what they want.
If you want your business to be profitable, then focus on your strengths, do great work and have a reputation. Promote your special products and keep your prices low.
If you want to see if you’re making money, keep a log of all your profits and losses. You’re making money if you’re earning more than you’re losing. A break-even analysis can help you figure out how many customers you need to eat and start making money. Keep an eye on your budget so you don’t get off track.
If you are willing to pay up to $8 for your first cup of coffee the blank of your first cup of coffee is $8
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