The Beach Umbrella Beach Umbrella is aâ take-out food store at a popular beach resort. Susanâ Sexton, owner of the Beach Umbrella Beach Umbrellaâ, is deciding how much refrigerator space to devote to four different drinks. Pertinent data on these four drinks are asâ follows: Cola Lemonade Punch Natural Orange Juice
Selling price per case $18.80 $20.75 $26.90 $39.30
Variable cost per case $13.80 $16.25 $20.10 $30.10
Cases sold per foot of shelf space per day 7 12 24 6

Sexton has a maximum front shelf space of 12 feet to devote to the four drinks. She wants a minimum of 1 foot and a maximum of 6 feet of front shelf space for each drink.

Required:

a. Calculate the contribution margin per case of each type of drink.
b. A coworker of Sexton's recommends that she maximize the shelf space devoted to these drinks with the highest contribution margin per case. do you agree with this recommendation? explain briefly.
c. What shelf-space allocation for the four drinks would you recommend for the Snack Shack?

Consider the local telephone company, a natural monopoly. the following graph shows the monthly demand curve for phone services and the company’s marginal revenue (mr), marginal cost (mc), and average total cost (atc) curves. 0 2 4 6 8 10 12 14 16 18 20 100 90 80 70 60 50 40 30 20 10 0 price (dollars per subscription) quantity (thousands of subscriptions) d mr mc atc 8, 60 suppose that the government has decided not to regulate this industry, and the firm is free to maximize profits, without constraints. complete the first row of the following table. pricing mechanism short run long-run decision quantity price profit (subscriptions) (dollars per subscription) profit maximization marginal-cost pricing average-cost pricing suppose that the government forces the monopolist to set the price equal to marginal cost. complete the second row of the previous table. suppose that the government forces the monopolist to set the price equal to average total cost. complete the third row of the previous table. under average-cost pricing, the government will raise the price of output whenever a firm’s costs increase, and lower the price whenever a firm’s costs decrease. over time, under the average-cost pricing policy, what will the local telephone company most likely do

Emily spent her summer vacation in buenos aires, argentina, where she got plastic surgery for a fraction of what it would cost in the united states. this is an example of:

By 2020, automobile market analysts expect that the demand for electric autos will increase as buyers become more familiar with the technology. however, the costs of producing electric autos may increase because of higher costs for inputs (e. g., rare earth elements), or they may decrease as the manufacturers learn better assembly methods (i. e., learning by doing). what is the expected impact of these changes on the equilibrium price and quantity for electric autos?