Consider Peter Gibbons, an employee of the fictional Initech Corporation from the movie Office Space. Peter has been asked to meet with efficiency experts (Bob and Bob) to discuss his work environment. One of the Bobs is curious about Peter’s tendency toward underperformance and confronts him about his lack of attention to office policies and […]
Electric companies typically have 5–10 different rate schedules for their main customer groups. The average price charged to large industrial users may differ substantially from that charged to residences. Moreover, many consumers pay a price for electricity based on the time of day they use it. For example, the prices charged by Consolidated Edison, a […]
In the town of Oz, there are two types of tennis players: wizards and imps. Wizards and imps do not socialize, so it would be impossible to start a tennis club that both types would join. Imps have access to credit but a weak demand for tennis as follows. PI = 30 – QI where […]
The managers of Roosevelt’s (a local yet upscale bar) are considering charging an admission fee on Thursday nights. They contemplate how to charge. Should they Option 1. Use just a beverage charge per beverage ordered or Option 2. Use an admission charge (a fee to enter the establishment) and a beverage charge per beverage ordered? […]
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