Bagels that would occur if it simply lowered the price

Assignment Help Microeconomics
Reference no: EM13314690

The Einstein Bagel Corp. offers a frequent buyer program whereby a consumer receives a stamp each time she purchases one dozen bagels for $5. After a consumer accrues 10 stamps, she receives one dozen bagels free.

This offer is an unlimited offer, valid throughout the year. The manager knows her products are normal goods. Given this information, construct the budget set for a consumer who has $150 to spend on bagels and other goods throughout the year. Does Einstein’s frequent buyer program have the same effect on the consumption of its bagels that would occur if it simply lowered the price of one dozen bagels by 3 percent? Explain.

Reference no: EM13314690

Questions Cloud

There are many parts to each of these amendments : There are many parts to each of these amendments. Identify which amendment and its specific part you feel is the most obtrusive to the roles and tasks of criminal justice officers. Explain your rationale.
Discuss how the tax benefits and present value would change : In addition, include the tax benefits (savings) for the first year and the present value (use 5% discount rate) of the total tax benefits for the entire 5-year period. Discuss how the tax benefits and present value would change if a different method ..
Find the equilibrium number of hours worked in this economy : Assume that Mf = Ma. Find the real wage that makes total labor supply and total labor demand exactly equal to each other (this is called, the equilibrium real wage). Find the equilibrium number of hours worked in this economy
Calculate each firm’s equilibrium output : The inverse market demand in a homogeneous-product Cournot duopoly is P = 100 – 2(Q1 + Q2) and costs are C1(Q1) = 12Q1 and C2(Q2) = 20Q2.
Bagels that would occur if it simply lowered the price : The Einstein Bagel Corp. offers a frequent buyer program whereby a consumer receives a stamp each time she purchases one dozen bagels for $5. After a consumer accrues 10 stamps, she receives one dozen bagels free.
What is the firm fixed cost at this level of output : The accompanying graph (top of next page) summarizes the demand and costs for a firm that operates in a perfectly competitive market.
Explain why this manager might nonetheless have a strong : Explain why this manager might nonetheless have a strong incentive to maximize the firm’s profits.
Consider now the decision problem of the agents : Consider now the decision problem of the agents. Let n denote the number of hours per month that an agent works. Write an equation relating n and l. Write the agents budget constraint. Express the budget constraint in terms of c and l. State the agen..
What level of q maximizes net benefits : Suppose that the total benefit and total cost from an activity are, respectively, given by the following equations: B(Q) = 150 + 28Q – 5Q2 and C(Q) = 100 + 8Q. (Note: MB(Q) = 28 – 10Q and MC(Q) = 8.)

Reviews

Write a Review

Microeconomics Questions & Answers

  Computing output at shut down point

At a price of $24, should a perfectly competitive firm operate or shut down in a the short run if its TC is given as:

  How to generate less revenue than the government spends

Excess burden is caused by the fact that taxes Answer are spent in ways that taxpayers do not support. distort economic decisions. generate less revenue than the government spends. are regressive instead of progressive.

  Identify at least one management goal for fannie mae

Lehman Brothers, AIG, Fannie Mae, Freddie Mac and Washington Mutual. Explain the relationship between these companies. Explain in your own words what happened with these companies which caused an international financial crisis.

  Buyer value number of buyers

Participating in the market for a product are 12 consumers, each of whom will buy at most one unit of the good, and 11 suppliers, each of whom will sell at most one unit of the good. The distribution of buyer values is as follows:

  How did the immigration to the us impact manuel

Examine the history of immigration to the United States from the Cape Verde Islands. How did the immigration to the US impact Manuel?

  Devise a hypothetical business situation

Devise a hypothetical business situation in which buying a lookback call option on a commodity may be a sound strategy for you. How about a down-and-out call option?

  Question about trade liberalization

Environmentalists discuss that trade liberalization harmful for the environment. The decisions of World Trade Organization in particular have been subject of much criticism.

  Explain how you would respond with economic policies.

Currently, the economy is in equilibrium at Q = 3200 (where Q = potential GDP) and P = 100. You can use monetary and fiscal policies to affect aggregate demand but you cannot affect aggregate supply in the short run.

  What is double counting in calculation gdp

draw a simple circular flow diagram with just firms:downstream firms that product final goods and services for consumption, and upstream in production only intermediate goods that are used by downstream firms in production.

  What role do our domestic deficit and debt problems play

The benefits of free trade are something that most economists are willing to recognize. And yet the question of optimal trade policy can be actually quite complicated. How do the readings in this group reveal this complexity.

  What is the group preference and choice

What is the group preference and what is the group choice according to the Borda count rule? Please justify your answers.

  What are possible opportunity cost of opening artic landa

1. Why do you suppose that firms in Artic nations are already developing specialized tanker ships and platforms for use in privately accessible Artic areas 2. What are possible opportunity cost of opening Artic lands to private extracti..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd