![]() ![]() (30 points) Suppoee a coffoshop chain would like to open ote store in a city with a linear main street of length 1 km. Find the minimum value of F such that you htick with just the regulur coffee rather than offering both the regular and the low caffeine variety is well? 2. What price will you set for your new product? If rumning the low caffeine production line entails a flow fixed cost F. What price will you set for a cup of coffee? - Suppose that in addition to regular coffee z A C = 2 1 you are also considering offering the low caffeine varlety, that is 2 CC =. Your company offers just one type of coffee, say regular, with znG = 2 1 . Suppose that you would always like to serve all the market. ![]() The marginal cost of producing one cup of cotfee of any caffeine content is equal to $1. Suppose that all eustomers' reservation prioe for a cup of coffoe is 85. If x is the customer's most preferred caffeine content (location of the customer), and the coffee have the caffeine content z, then customer x bears a unit utility cost of $1 per unit (i.e. The total number of eustomers Is N = 200 are equally distributed along the line. The eustomers who buy coffee have different taste x for the caffeine content, with x ranging from 0 to 1. ![]() (25 points) Suppose that you are the CEO of Starbucks. A4.pdf - Adobe Acrobat Reader (64-bit) Earn_1_Eoo_ 30 1. ![]()
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