As a budding entrepreneur,you have purchased a small bagel shop.You have engaged in a market study to categorize your customers' willingness to pay for a meal (coffee+bagel)into 8 equal sized groups: ($5.00,$4.50,$4.00,$3.50,$3.00,$2.50,$2.00,$1.50).All of your costs are fixed except labor and materials,which cost $2.25 per meal sold.
a.What price should you charge for a meal? Does your answer depend on the total number of consumers?
b.Suppose your market research tells you that the four lowest value groups are all students.Should you offer a student discount? If so,how much?

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The Answer of As a budding entrepreneur,you have purchased a small bagel shop.You have engaged in a market study to categorize your customers' willingness to pay for a meal (coffee+bagel)into 8 equal sized groups: ($5.00,$4.50,$4.00,$3.50,$3.00,$2.50,$2.00,$1.50).All of your costs are fixed except labor and materials,which cost $2.25 per meal sold.
a.What price should you charge for a meal? Does your answer depend on the total number of consumers?
b.Suppose your market research tells you that the four lowest value groups are all students.Should you offer a student discount? If so,how much?

As a Budding Entrepreneur,you Have Purchased a Small Bagel Shop