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At a student café, there are equal numbers of two types of customers with the following values. The café owner cannot distinguish between the two types of students because many students without early classes arrive early anyway (i.e., she cannot price discriminate).
Students with early classes Students without early classes
Coffee 70 60
banana 50 100
The MC of coffee is 10. The MC of a banana is 40. Is bundling more profitable than selling separately? If so what price should be charged for the bundle?
Assume that income is RM70. What is the price elasticity at P = 8. Also, calculate arc elasticity at the interval between P=7 and P= 8.
1. suppose on monday april 23 2012 you withdraw 1000 from your savings account and put the money under the mattress.a.
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Explain what strategies you used to formulate a viable argument.
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Law of Demand indicates that there is the inverse relationship between price and quantity, why does it matter which particular mix of price and quantity is selected?
What shape did the short-run aggregate supply curve have during the 1930s, according to Keynes? Explain
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