Consider the Following Scenario to Answer the Questions That Follow

question 57

Multiple Choice

Consider the following scenario to answer the questions that follow.
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.
-Consider the accompanying table.You are the only provider of bottled water for three cities.Because you have access to a natural spring,the marginal cost to produce an additional bottle is $0.How many bottles of water would you need to produce to maximize your profits and at what price would you sell it?

• A)11 bottles at $11 each
• B)10 bottles at $10 each
• C)15 bottles at $7 each.
• D)8 bottles at $12 each
• E)15 bottles at $7 each

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Definitions:

World-class Suppliers

Suppliers that offer best-in-class services, quality, and efficiency, often recognized for their excellence through industry awards or certifications.

Technological Change

The process of innovation and the introduction of new technologies or methods to improve products, services, or processes.

Supply Chain Management

The coordinated management of all activities involved in sourcing, procuring, producing, and delivering goods or services to consumers.

Supplier Network

A group of suppliers that are interconnected and interact with one another to supply goods or services to a particular company.