Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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.

image text in transcribed
Seven years ago, you started a crosstown delivery service. The service is an environmentally friendly business and, given all the trafc 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 at and measures less than 11x17. You have a package service using a 100 lb. capacity bike trailer for anything weighing up to 10 lbs. Asuauwaytg 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 MIR-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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Theory Of Moral Sentiments

Authors: Adam Smith, D D Raphael

1st Edition

0865970122, 9780865970120

More Books

Students also viewed these Economics questions