Table: Value Meals The Table Shows James and Chris' Willingness to Pay at

question 148

Essay

Table: Value Meals $$\begin{array} { l c c } \hline & \text { James } & \text { Chris } \\\hline \text { Cheeseburger } & \$ 1.50 & \$ 1.00 \\\text { French Fries } & \$ 0.50 & \$ 1.25 \\\text { Soft Drink } & \$ 1.20 & \$ 0.50 \\\hline\end{array}$$
The table shows James and Chris' willingness to pay at a local fast-food restaurant. Use this information to answer the following questions.
a.
If the fast-food restaurant is trying to maximize profits by pricing separately, what price will they charge for a cheeseburger? French fries? Soft drink?
b.
Assuming that it costs the restaurant only $0.10 to produce a cheeseburger, $0.15 to produce one order of French fries, and $0.05 to produce a soft drink, what will be their total profits if they price separately using the prices determined above?
c.
Suppose the restaurant is trying to decide whether or not to offer a value meal, which would include a cheeseburger, French fries, and a soft drink. What price should they charge for this value meal? Would profits be higher or lower than if the restaurant sets prices individually? Explain.

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Definitions:

Ingratiation

A social influence strategy where an individual attempts to make themselves more likeable or attractive to another, often through flattery or favors.

Meta-Communication

Communication about communication, referring to the ways in which individuals convey how their messages should be interpreted.

Semantics

The branch of linguistics concerned with the meaning of words, phrases, and sentences.

Language Routines

Repeated patterns or sequences of language used in communication, often unconsciously, that serve specific social functions.