Illustrate what price would be set for the meal deal

Assignment Help Business Economics

Reference no: EM1357351

Suppose there are three types of customers who frequent Louisiana Fried Chicken (LFC), a fast food chain that sells chicken and biscuits. (For simplicity, assume an equal number of each type of customer) These customers have the following valuations ("reservation prices") for chicken and biscuits:

Consumer Chicken Biscuits
1 $12 $1
2 $10 $3
3 $9 $4

Suppose the fully allocated cost of making an order of chicken is $6 and the fully allocated cost of making an order of biscuits is $2.50.

If LFC sells chicken and biscuits as a meal deal, what price would be set for the meal deal which includes both an order of chicken and an order of biscuits?"

Reference no: EM1357351

Questions Cloud

Explain what is human resource management : Explain What is human resource management and What is the primary function of human resource management and What is the role of human resource management in an organization's strategic plan?

Compute price-output if firm-oligopolstic industry collude : If firms in an oligopolstic industry successfully collude and form a cartel, what price and output will result? Price lower than the competitive price and because there are only a few firms in the industry, less output than the competitive amount

Determine the speed of the stone : An oil drop carries one excess electron and weighs 9.3 x10-15 N. What electric field strength is needed to suspend the drop so it is motionless.

Explain what is corporate social responsibility : Explain what is Corporate Social Responsibility and how does CSR relate to an organization's mission statement and to its strategy?

Illustrate what price would be set for the meal deal : If LFC sells chicken and biscuits as a meal deal, illustrate what price would be set for the meal deal which includes both an order of chicken and an order of biscuits.

Best types of research for consumer complaints : Explain what is the best type of research to use when dealing with human attitudes and emotions and how do you measure and analyze the results?

Determine the minimum nonzero thickness : A shotgun fires a large number of pellets upward, with some pellets traveling very nearly vertically and others as much as 1.0o from the vertical. suppose that the initial speed of the pellets is uniformly 150ms-1 and ignore air resistance.

How do these traits vary between cultures : How do these traits vary between cultures and how can leaders who lead in an international context deal with multicultural perceptions? Give specific examples.

Explain the fixed order quantity reorder point p : Explain the fixed order quantity reorder point p safety stock technique is best utilized to plan the demand for products

User Account

All Pages