Offer either product

Assignment Help Business Economics
Reference no: EM13742748

Jim’s diner is just about to open in Memphis, Tennessee. However, Jim is trying to decide whether he wants to offer Coke or Pepsi soda products. He determines that, to offer either product, he will have to spend $1,600 in sunk costs to purchase and install the appropriate paraphernalia, e.g., a large Coca-Cola or Pepsi sign out front. Ultimately, he chooses to offer Coke products and agrees to pay Coke 5 cents per ounce of Coke sold for the right to use its product. After Jim makes the investments specific to his soda choice, Coke returns and asks for a fixed (one-time) fee in addition to the 5 cents per ounce. What is the most Jim should be willing to pay?

Reference no: EM13742748

Questions Cloud

Sells price-elastic products or price-inelastic products : Why do governments raise taxes on cigarettes and alcohol to raise government revenues? What changes do you make to your demand for gasoline when the prices start to climb up? Would you want to own a business that sells price-elastic products or price..
What is the market interest rate : The bank is paying 10.13% compounded annually. The inflation is expected to be 11.77% per year. What is the market interest rate?
Draw the long-run conditional labor demand : A firm’s production function is given by: f(L,k) = L^1/2 , where L is the only input into production and it is variable in both the short and long run. Draw the long-run conditional labor demand in (L,Q) space (in other words, with L on the x-axis)
What is the researchers conclusion : The mean weekly unemployment benefit in the US was in 2003. A researcher in Virginia had a theory that the mean weekly unemployment benefit in Virginia was less than the national average. What is the researcher's conclusion
Offer either product : Jim’s diner is just about to open in Memphis, Tennessee. However, Jim is trying to decide whether he wants to offer Coke or Pepsi soda products. He determines that, to offer either product, he will have to spend $1,600 in sunk costs to purchase and i..
Online store that sells home and garden products : Andrew has decided to open an online store that sells home and garden products. After searching around, he chooses the software company Initech to provide the software for his website since their product required the least amount of specialized inves..
Costs exceed the benefits : Do you think the benefits of government regulation exceed the costs? In what areas, if any, do you think the costs exceed the benefits? Cite an example of a company's efforts to circumvent government regulations. Is the use of loopholes ethical?
The black death : The Black Death: In the middle of the fourteenth century, an epidemic known as the Black Death killed about a third of Europe’s population, about 34 million people. Use the production model to explain why wages might have been higher.
Calculate marginal product for following levels of man hours : The production function for Our Production is Q = 25L – 0.05L2 ; where Q is output and L man–hours. (i) What level of man–hours will maximize total output? (ii) Calculate the marginal product for the following levels of man–hours: 25, 50, 100, 150, 2..

Reviews

Write a Review

 

Business Economics Questions & Answers

  Identify the circumstances under which sarah should choose

identify the circumstances under which Sarah should choose package A, the circumstances under which she should choose package B

  Distinguish between the following views of monetary policy

Distinguish between the following views of monetary policy

  Real interest rate rises-quantity of loanable funds supplied

As real interest rate rises, the quantity of loanable funds supplied _____ and the quantity of loanable funds demanded _____

  Perhaps the most important step when developing forecasted

The AFN equation produces more accurate forecasts than the forecasted financial statement method, especially if fixed assets are lumpy, economies of scale exist, or if excess capacity exists.

  Opportunity cost funds interest

Assuming that your opportunity cost funds interest rate is 5% which refrigerator would you buy and why.

  The eventual change in gdp will be

A major industrial firm decides to spend $2,000,000 to purchase new machines for a factory. If the marginal propensity to consume is 0.8, the eventual change in GDP will be?

  The wage-schooling locus for someone for whom returns

Draw the wage-schooling locus for someone for whom returns to schooling decrease through college but increase after college

  Describe the different aspects of the business

Describe the different aspects of the business that you should be looking at from an economics perspective in order to run the company efficiently and explain using economics theory how you would improve the running of your company.

  Illustrate what conclusions can be drawn from these data

The number of days' sales in inventory. Round to nearest dollar and one decimal place. Illustrate what conclusions can be drawn from these data concerning the inventories.

  Construct the composite index

Just construct the diffusion index from month 2 to 3. In this problem, we have three leading indicators. The diffusion index from month 1 to 2 is 66.7 (=2/3) because two indicators move up and one moves down.

  By what percentage quantity of mopeds demanded

The price elasticity of demand for mopeds, in absolute value, is 0.5, by what percentage will the quantity of mopeds demanded increase if the prices fall by 10%?

  Illustrate what happens to employment output

Congress cannot dictate how many workers industries hire at mandated wage. Given this fact, Illustrate what are effects of this law. Specifically, illustrate what happens to employment, output and total amount earned by workers.

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