Question
6. Seven years ago, you started a crosstown delivery service. The service is an environmentally friendly business and, given all the traffic congestion, you are
6. Seven years ago, you started a crosstown delivery service. The service is an environmentally friendly business and, given all the traffic congestion, you are also the fastest service in the city since your entire crew are bicyclists. You have two types of service. You have a small parcel service for anything that is flat and measures less than 11x17. You have a package service using a 100 lb. capacity bike trailer for anything weighing up to 10 lbs. As a way to introduce the new package service when you implemented the small package service, you charged the same price for packages as parcels. You are now wondering if you should charge different prices for the parcel and package service.
Complete the table below for the packages market.
Price | Packages | TR | MR | TC | MC | MR-MC | Profit |
100 | 50 | 5,000 |
| 450 |
|
| 4,550 |
| 70 | 6,300 | 65 | 650 | 10 | 55 | 5,650 |
80 |
| 7,200 | 45 | 850 | 10 | 35 | 6,350 |
70 | 110 | 7,700 | 25 | 1,050 | 10 | 15 |
|
| 130 | 7,800 | 5 | 1,250 | 10 | -5 | 6,550 |
50 |
| 7,500 | -15 | 1,450 | 10 | -25 | 6,050 |
40 | 170 | 6,800 | -35 | 1,650 | 10 | -45 |
|
| 190 | 5,700 | -55 | 1,850 | 10 | -65 | 3,850 |
20 |
| 4,200 | -75 | 2,050 | 10 | -85 |
|
10 | 230 | 2,300 | -95 | 2,250 | 10 | -105 | 50 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started