As a budding entrepreneur, you have purchased a small bagel shop. You have engaged in a market study to categorize your
Posted: Fri Jul 01, 2022 8:13 am
As a budding entrepreneur, you have purchased a small bagelshop. You have engaged in a market study to categorize yourcustomers’ willingness to pay for a meal (coffee+bagel) into 8equal sized groups: ($5.00, $4.50, $4.00, $3.50, $3.00, $2.50,$2.00, $1.50). All of your costs are fixed except labor andmaterials, which cost $2.25 per meal sold.
(a) What price should you charge for a meal? (Enterdollars and cents, separated by a decimal point; don't include the"$").
(b) Suppose your market research tells you that the fourlowest value groups are all students. Should you offer a studentdiscount? If so, how much of a discount? (Enterdollars and cents, separated by a decimal point; don't include the"$").
(a) What price should you charge for a meal? (Enterdollars and cents, separated by a decimal point; don't include the"$").
(b) Suppose your market research tells you that the fourlowest value groups are all students. Should you offer a studentdiscount? If so, how much of a discount? (Enterdollars and cents, separated by a decimal point; don't include the"$").