If Chip and Cathy Have Different Valuations on Dancing and Dinner

question 13

Multiple Choice

If Chip and Cathy have different valuations on dancing and dinner as in the following table,what is the maximum profit Sammy can extract from Chip and Cathy for an evening's entertainment at Sammy's dinner theater if Sammy's marginal cost is $25 for dinner and $5 for dancing per person?

• A) $60.
• B) $70.
• C) $80.
• D) $90.
• E) $100.

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Definitions:

Normal Time

The average time that a worker takes to complete a specific task under normal working conditions, considering both productive and unproductive time.

Standard Time

indicates the amount of time that should be taken to complete a particular job or task, typically determined through time studies and used for planning and benchmarking.

Variable Allowance

An additional time or financial buffer incorporated into estimates or plans to accommodate uncertainty or variations from the norm.

Standard Deviation

A measure indicating the amount of variability or dispersion in a set of related values.