Consider the following costs of owning and operating a car. a $19 comma 500 fiat 500 pop financed over 60 months at 6 percent interest means a monthly payment of $377. insurance costs $140 a month regardless of how much you drive. the car gets 30 miles per gallon and uses regular-grade gasoline that costs $1.95 per gallon. finally, suppose that wear and tear on the car costs about $0.10 a mile. which costs are fixed, and which are variable? what is the marginal cost of a mile driven? in deciding whether to drive from atlanta to las vegas (about 2,000 miles round-trip), which costs would you consider? why?

Which change is illustrated by the shift taking place on this graph? an increase in demanda decrease in demandan increase in supplya decrease in supply

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 51 101 the marginal cost of coffee is 10 and the marginal cost of a banana is 40. the café owner is considering three pricing strategies: 1. mixed bundling: price bundle of coffee and a banana for 161, or just a coffee for 70. 2. price separately: offer coffee at 60, price a banana at 101. 3. bundle only: coffee and a banana for 121. do not offer goods separately. assume that if the price of an item or bundle is no more than exactly equal to a student's willingness to pay, then the student will purchase the item or bundle. for simplicity, assume there is just one student with an early class, and one student without an early class. price strategy revenue from pricing strategy cost from pricing strategy profit from pricing strategy 1. mixed bundling $ $ $ 2. price separately $ $ $ 3. bundle only $ $ $ pricing strategy yields the highest profit for the café owner.

Aminor has the legal right to repudiate