1-19 As in Problem 1-18, state the correct economic crite- rion for each of the following situations.....
Question:
1-19 As in Problem 1-18, state the correct economic crite- rion for each of the following situations..
(a) The engineering school raffled off a car; tickets sold for $2 each or three for $5. When the stu- dents were selling tickets, they noted that many people had trouble deciding whether to buy one or three tickets. This indicates the buyers' crite- rion was
(b) A student organization bought a soft-drink machine for use in a student area. There was considerable discussion over whether they should set the machine to charge 75g. $1, or $1.25 per drink. The organization recognized that the num- ber of soft drinks sold would depend on the price charged. Eventually the decision was made to charge $1. The criterion was.
Step by Step Answer:
Engineering Economic Analysis
ISBN: 9780357419687
11th Edition
Authors: Donald Newnan, Ted Eschenbach, Jerome Lavelle