The Soup Nut Serves His Signature Minestrone Soup in Two

question 20

Multiple Choice

The Soup Nut serves his signature minestrone soup in two different bowl sizes,large and small.What strategy should he use to extract the most surplus possible out of customers who come in two types,regular and big eaters,when he cannot distinguish between the two types by observation?

• A) Distort the size of the small bowl downward to make it less attractive to the big eaters, allowing him to raise the price of the large bowl.
• B) Distort the size of the large bowl downward to make it attractive to both big and regular eaters.
• C) Distort the size of the small bowl upward to make it harder for regular eaters to separate themselves from big eaters.
• D) Distort the size of the large bowl upward to make big eaters less likely to consume the small bowl.

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Definitions:

Immediate Loss

Financial damage or cost incurred directly as a result of an event, action, or decision, without any delay.

Forged Instruments

Documents that are illegally altered or created to deceive or commit fraud.

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A guarantee in commercial transactions that all statements and endorsements regarding a negotiable instrument are true.

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A negotiable instrument that has been unlawfully modified in order to benefit someone other than the intended payee, typically involving change to the amount or payee name.