Food for Life makes health foods for active, outdoor people. Their three basic products are whey powder, a high protein strength bar, and a meal additive that has the taste and consistency of sawdust. Research shows that consumers fall into two types (A and B) and these are described in the table below by their […]
The University of Pennsylvania basketball team will play both the University of Kansas and Nowhere University this year on Penn’s campus. Kansas is a nationally ranked team, while Nowhere is just plain terrible. The athletic director traditionally prices each game separately. You approach him and point out that two other pricing options exist. One possibility […]
Bill Gates inherited intelligence, ambition, and a competitive spirit from his father, a successful Seattle attorney. After graduating from a private prep school in Seattle, he enrolled in Harvard but dropped out to pursue his passion—computer programming. Paul Allen, a friend from prep school, presented Gates with the idea of writing a version of the […]
The Bergen Company and the Gutenberg Company are the only two firms that produce and sell a particular kind of machinery. The demand curve for their product is P = 580 – 3Q where P is the price (in dollars) of the product, and Q is the total amount demanded. The total cost function of […]
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