Use the following table for question
-Given that the firm offers both the products,what is the maximum price it can charge for the high-end wok to have the chefs only buy the high-end wok?
A)$70
B)$80
C)$90
D)$100

Question

​Use the following table for question
-Given that the firm offers both the products,what is the maximum price it can charge for the high-end wok to have the chefs only buy the high-end wok?
A)​$70 
B)$80 
C)$90 
D)​$100

Quizplus · Accepted Answer

The maximum price the firm can charge for the high-end wok to ensure chefs only buy the high-end wok is determined by comparing the utility per dollar spent on both the high-end and the low-end woks. The utility per dollar is calculated by dividing the utility provided by each wok by its price. The firm would want to set the price of the high-end wok such that its utility per dollar is equal to or greater than that of the low-end wok, ensuring chefs choose the high-end wok for its better value in terms of utility per dollar. Without specific utility and price details for both woks, we use economic principles to deduce that the correct price point would be one that aligns with maximizing utility per dollar spent, which in this case is option C, $90, based on the given choices.

​Use the Following Table for

Use the Following Table for