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:

Ledger Balance

The total balance in a ledger account at a particular point in time, reflecting all transactions up to that moment.

Available Balance

The amount of funds in a checking or savings account that is accessible for immediate use, taking into account any pending transactions.

Net Collection Float

Net collection float refers to the difference in time between when a check is deposited into a bank account and when the funds are available for use, affecting a company's cash flow.

Net Float

The difference between checks written against and deposited in an account, which affects the balance available in the account.