References: Levitt‚ Steven D. (2006) An Economist Sells Bagels: Profit Maximization in Practice. Capital Ideas. University of Chicago‚ Booth School of Business. Retrieved 2009‚ March 11 from http://www.chicagobooth.edu/capideas/may07/5.aspx. Lucas‚ Mike (1999‚ June). The Pricing Decision: Economists Versus Accountants
Premium Economics Profit maximization Pricing
customer walks into a deli asking for the cost of a dozen bagels. The proprietor responds with $5.50. The prospective customer responds‚ "but the deli down the street sells a dozen bagels for $4.50". "Why don’t you buy the bagels there‚" the proprietor asks. "He’s out of bagels today‚" the customer replies. The proprietor retorts‚ "When I’m out of bagels‚ I’ll also sell you a dozen for $4.50". The customer pays $5.50 and receives the 12 bagels. Not only did the proprietor of the store know his competitor’s
Premium Costs Investment Management
shop that produces bagels in a monopolistically competitive market. The graph below shows its demand curve (labeled Demand){ marginal revenue curve (labeled MR){ marginal cost curve (labeled MC)‚ and average total cost curve (labeled ATC). Assume that the company is operating in the short run. DOLLARS (Dollars per bagell Me $7.00 ~-----/ ATC $5.50 $5.00 $3.80 $2.00 Demand MR 480 690 840 QUANTITY [Bagels per dayl The profit-maximizing level of output is 480 ’" bagels per day at a price
Premium Economics Monopoly Marginal cost
revenue product (MRP) of the last doughnut baker hired is $35‚ the MRP of the last bagel baker hired is $15‚ and a bakery must pay doughnut bakers $40 a day and bagel bakers $10 per day. To maximize profits the bakery should hire: A) more doughnut bakers and less bagel bakers. B) less doughnut bakers and more bagel bakers. C) less of both doughnut bakers and bagel bakers. D) more of both doughnut bakers and bagel bakers. Answer: B 2. If two inputs are complementary an increase in the price
Premium Supply and demand Economics
Paul Feldman had created a moral incentive when he would lay out bagels for people throughout different businesses and would also have an empty basket with a suggested price to pay for the bagels they took. What Paul found after collecting his earnings was that his collection rate was about 95%‚ making the majority of his customers honest. When people did cheat from him‚ he found
Premium Motivation Incentive Incentive program
Question 1 0.5 out of 0.5 points St. Charles Hospital‚ located in an upper-income neighborhood of a large city‚ recently received a restored mansion as a gift from an appreciative patient. The board of directors decided to remodel the mansion and use it as recuperative quarters for patients willing to pay a premium for luxurious accommodations. The cost to the hospital of using the mansion includes Selected Answer: d. both b and c Question 2 0 out of 0.5 points Which
Premium Management Marketing Education
Scientific method paper Part I. It was the finals of the 2004 swimming state championships. I was seated second in the 100-yard individual breaststroke. My heart was pounding as I swam my warm up laps. I would have to drop about a second or so to have any shot at the title and the gold. I hopped out of the warm up pool‚ and headed over to grab my towel and work out a strategy plan with my coach. The first order of business was to address the main problem. I needed to win. My coach
Premium Scientific method Hypothesis Observation
Practice Test Economics 01 Midterm 2 Fall 2013 Professor K.C. Fung Multiple Choice: Choose the best answer 1. Suppose price of baguette is $1 and price of sushi is $5‚ then to maximize total utility‚ a rational consumer should consume until: a) the marginal utility of baguette divided by the marginal utility of sushi is 1 b) the marginal utility of baguette divided by the marginal utility of sushi is 5 c) the marginal utility of baguette divided by the marginal
Premium Economics Microeconomics
I classified her as a lower upper or upper middle class person. The second person I chose was a younger man with short brown hair. He was wearing a FSU sweatshirt‚ blue jeans‚ and Nike shoes. He was drinking a water and eating scrambled eggs and a bagel. I classified him as a middle class person. The third person I chose was an older man with a bald head and a huge beard. He was wearing glasses‚ a black t-shirt‚ and blue jeans. He had a big belly and a tattoo
Premium Debut albums Eye color Food
Oct. 2012. . Feinstein‚ Andrew Hale‚ and John M. Stefanelli. Purchasing: Selection and Procurement for the Hospitality Industry. New York: John Wiley and Sons‚ 2005. Print. "Fresh Bagels‚ Bagel Sandwiches‚ Coffee & Espresso | Einstein Bros Bagels." Fresh Bagels‚ Bagel Sandwiches‚ Coffee & Espresso | Einstein Bros Bagels. Einstein Noah Restaurant Group‚ Inc‚ 2012. Web. 17 Oct. 2012. . "Galasource | Service. Period!" Restaurant Equipment Supply. Galasource Ventures‚ 2003-2012. Web. 17 Oct. 2012. . George
Premium Fast casual restaurant Types of restaurants Fast food restaurant