A bagel shop sells fresh baked bagels from 5 a.m.until 7 p.m.every day.The shop does not sell day-old bagels,so all unsold bagels are thrown away at 7 p.m.each day.The cost of making and selling a dozen bagels is $1.00;there are no costs associated with throwing bagels away.If the manager has 8 dozen bagels left at 6:30 p.m.on a particular day,which of the following alternatives is most attractive?
A) Lower the price of the remaining bagels,even if the price falls below $1.00 per dozen.
B) Lower the price of the remaining bagels,but under no circumstances should the price fall below $1.00 per dozen.
C) Throw the bagels away and produce 8 fewer dozen bagels tomorrow.
D) Starting tomorrow,lower the price on all bagels so they will all be sold earlier in the day.
Correct Answer:
Verified
Q109: It costs a company $35,000 to produce
Q110: Betty's Bakery bakes fresh bread every morning.Any
Q111: You have eaten two bowls of ice
Q112: Kyle is planning to take a roadtrip.After
Q113: Suppose the cost of operating a 75
Q115: A tax on gasoline encourages people to
Q116: You are considering staying in college another
Q117: Suppose your management professor has been offered
Q118: Economists are particularly adept at understanding that
Q119: Yvette buys and sells real estate.Two weeks
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents