Distinguish between the two types by observation

Assignment Help Business Economics

Reference no: EM13833557

The Soup Nut serves his signature minestrone soup in two different bowl sizes, large and small. What strategy should he use to extract the most surplus possible out of customers who come in two types, regular and big eaters, when he cannot distinguish between the two types by observation?

a. Distort the size of the small bowl downward to make it less attractive to the big eaters, allowing him to raise the price of the large bowl.

b. Distort the size of the large bowl downward to make it attractive to both big and regular eaters.

c. Distort the size of the small bowl upward to make it harder for regular eaters to separate themselves from big eaters.

d. Distort the size of the large bowl upward to make big eaters less likely to consume the small bowl.

Reference no: EM13833557

Questions Cloud

Supply of money compared to the demand for money : Interpret the following graph showing the potential changes in supply of money compared to the demand for money. The demand for money is represented by line MD and the initial supply of money is represented by line MS. If there is no change in the in..

What are the dangers of increasing the money supply : What trade-offs does the Federal Reserve consider when deciding how rapidly or how slowly to increase the U.S. money supply? What are the dangers of increasing the money supply too slowly? Too rapidly? What factors make it difficult to predict the gr..

Normative economic normative analysis : An essay on "to what extent do you think normative economic normative analysis as opposed to positive economic analysis, determines our nations public policy decision made by government? why? is that "good" or bad"? why? 150 words excluding "a","an" ..

Class measures distance to the nearest object : The motion detector we used in class measures distance to the nearest object by using a speaker and a microphone. The speaker clicks 30 times a second. The microphone detects the sound bouncing back from the nearest object in front of it. The compute..

Distinguish between the two types by observation : The Soup Nut serves his signature minestrone soup in two different bowl sizes, large and small. What strategy should he use to extract the most surplus possible out of customers who come in two types, regular and big eaters, when he cannot distinguis..

What is the average velocity of the ball : A lead ball is dropped into a lake from a diving board 5.08m above the water. It hits the water with a certain velocity and then sinks to the bottom with this same constant velocity. It reaches the bottom 4.72s after it is dropped ( Assume the positi..

What is the bonds modified duration : A bond has a Macaulay duration of 5.5 a yield to maturity of 6.1 percent, a coupon rate of 7.0 percent, and semi annual interest payments. What is the bond's modified duration?

What is meant by the incidence of a tax : What is meant by the incidence of a tax? Explain why the statutory and actual incidence of a tax often differs.

What are some of the secondary effect of this tax : The tax on cigarettes in New York City is the highest in the nation- $5.85 per pack. Does this tax raise a lot of revenue for New York City? Why or why not? What are some of the secondary effect of this tax?

User Account

All Pages