Maximize profits for hamburgers

Assignment Help Business Economics
Reference no: EM133067696

The following table represents Frank and Betty's maximum willingness to pay for a burger and fries from Hermie's Drive In. Suppose the marginal cost of making a hamburger is $0.50 and the marginal cost of an order of French fries is $0.25 (assume there are no fixed costs for either).

a) If Hermie's sets prices individually, what price would maximize profits for hamburgers? French Fries? How much profit would they earn from Frank and Betty using this pricing strategy?

B) If instead they bundle the hamburger and French fries into a combo meal, what price would maximize profits for the combo? How much profit would they earn from Frank and Betty using this pricing strategy?

 

Frank

Bety

Hamburger

$6.00

$3.00

French Fries

$.50

$3.00

Reference no: EM133067696

Questions Cloud

Advantages and disadvantages of using bid-ask midpoints : Provide profit diagrams for each strategy and index using the spreadsheet OptionStrategyAnalyzer] De.xism. Let Exhibits 1 and 2 correspond to the first strategy
Identify the risks to wo arising from the weaknesses : Identify the risks to WO arising from the weaknesses apparent in the above scenario and explain why these should be of concern to the board of directors
Identify four potential sources of revenue for online travel : Identify four potential sources of revenue for Online Travel and Tourism Services, and briefly explain competition in online travel.
Determine Mr Ramsey maximum charitable donations tax credit : During 2019, these shares are given to a registered Canadian charity. Determine Mr. Ramsey's maximum charitable donations tax credit in 2019
Maximize profits for hamburgers : The following table represents Frank and Betty's maximum willingness to pay for a burger and fries from Hermie's Drive In. Suppose the marginal cost of making a
Determine the market equilibrium point for goods : 1. Suppose we know the quantity of good "X" demanded and supplied at two different price levels as shown in the following table:
Similarities and differences between morals and ethics : Discuss the similarities and differences between morals and ethics. Is it possible for a business to have morals? Is it possible for a business to have ethics
Adequacy of hospital nutrition : What do you think about the adequacy of hospital nutrition? Attached is an older important paper that had huge impact when it was published - read it and see if
What are the entries of the cash flow statement : What are the entries of the cash flow statement of a food restaurant? How do you calculate the cash flow statement of a food restaurant

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

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