Scenario 17-5 Assume That a Local Restaurant Sells Two Items, Salads and Salads

question 415

Multiple Choice

Scenario 17-5
Assume that a local restaurant sells two items, salads and steaks. The restaurant's only two customers on a particular day are Mr. Carnivore and Ms. Leafygreens. Mr. Carnivore is willing to pay $20 for a steak and $7 for a salad. Ms. Leafygreens is willing to pay only $8 for a steak, but is willing to pay $12 for a salad. Assume that the restaurant can provide each of these items at zero marginal cost.
-Refer to Scenario 17-5. If the restaurant is unable to use tying, what is the profit-maximizing price to charge for a steak?

• A)$20
• B)$16
• C)$12
• D)$8

---

Definitions:

Generation

A group of individuals born and living around the same time, typically considered to be about 20–30 years.

Development

The process through which an organism grows or progresses, often involving physical, psychological, or social changes.

Multicellular Adult

An organism composed of multiple cells that has reached a mature or fully grown stage.

Single Cell

Describing an organism or entity composed of only one cell, often referring to unicellular microorganisms.