1. Nahoom Cafe has two restaurants in East London that are open every day of the week. The combined total fixed costs for the two restaurants equal R4 590 000 per year. They offer various meals from coffee to full meals. On average each customer spends R85 in the restaurant. The average cost of food and other variable costs per each customer is R34. The target profit forNahoom Cafe is R1 530 000 Calculate the sales revenues needed to earn the target profit.

Suppose that two firms produce differentiated products and compete in prices. as in class, the two firms are located at two ends of a line one mile apart. consumers are evenly distributed along the line. the firms have identical marginal cost, $60. firm b produces a product with value $110 to consumers.firm a (located at 0 on the unit line) produces a higher quality product with value $120 to consumers. the cost of travel are directly related to the distance a consumer travels to purchase a good. if a consumerhas to travel a mile to purchase a good, the incur a cost of $20. if they have to travel x fraction of a mile, they incur a cost of $20x. (a) write down the expressions for how much a consumer at location d would value the products sold by firms a and b, if they set prices p_{a} and p_{b} ? (b) based on your expressions in (a), how much will be demanded from each firm if prices p_{a} and p_{b} are set? (c) what are the nash equilibrium prices?

Happy foods and general grains both produce similar puffed rice breakfast cereals. for both companies, thecost of producing a box of cereal is 45 cents, and it is not possible for either company to lower their productioncosts any further. how can one company achieve a competitive advantage over the other?

Abond purchased for $950 was sold for $980 after one year. the interest received during the year is $25. the bond's yield is: