Consider the Following Scenario to Answer the Following Questions: the Varsity,located

question 50

Multiple Choice

Consider the following scenario to answer the following questions: The Varsity,located in downtown Atlanta,is the world's largest drive-in restaurant.Located near the Georgia Tech campus,the drive-in attracts two distinct types of customers-college students and visitors to Atlanta.The owners are considering offering a student discount of $1 off their combo meal,which is regularly priced at $9.There are 5,000 students interested in purchasing a combo meal,with a maximum willingness to pay of $8.There are 5,000 visiting customers interested in purchasing the combo meal,with a maximum willingness to pay of $9.Assume that each customer,at most,will purchase a single meal and the marginal cost is $5.
-What will be the amount of total revenue for the Varsity if the owners offer a single price of $8 per combo meal?

• A) $90,000
• B) $85,000
• C) $80,000
• D) $65,000
• E) $40,000

---

Definitions:

Food Supply

The availability and access to food sufficient to meet the nutritional needs of populations, influenced by production, distribution, and consumption patterns.

Medicine

The science and practice of diagnosing, treating, and preventing disease and injury in humans and animals.

Visible Minority

Refers to a group of people in a given population who are identified as not being part of the majority race or ethnicity, often used in the context of employment, education, and anti-discrimination policies.

Canada

A country located in the northern part of North America, known for its vast landscapes, multicultural cities, and bilingual population (English and French).