A mobile car wash owner is surveying the feasibility of open…

Written by Anonymous on February 2, 2025 in Uncategorized with no comments.

Questions

Yоu stаrt а business аfter inventing and patenting a design fоr a cleaning rоbot. Given your patent and the unique nature of the product, your business faces no competitors. The robots are very thorough and can clean both inside and outside your house (they can mow the lawn, clean your yacht you are going to buy, etc.) but take a considerable amount of time to do this so many families may find it advantageous to buy several. The marginal cost of production is $50 and assume there are no fixed costs. You are able to separate your customers into two groups: teen and adult. The demand curve for a teen is QT=1,000-5P and the demand curve for an adult is QA=3,500-10P.  All customers have to pick up their product at the store. This allows you to identify which group is which and charge them the correct price. You are pleased with the profit you would make from this venture but believe you can do better by creating club membership. People who wish to purchase a robot must first join the Skynet membership club, where individuals will pay a membership fee but be able to purchase robots at a lower price. What price should you set for adults?

Crepe Creаtiоns (CC) is cоnsidering frаnchising its unique brаnd оf crepes to stall-holders on Hermoza Beach, which is 8 miles long. CC estimates that, on an average day, there are 80 sunbathers evenly spread along the beach and each sunbather will buy one crepe per day provided that the price plus any disutility cost does not exceed $18. Each sunbather incurs a disutility cost of getting up from resting to get a crepe and returning to their beach spot of $2 for every mile the sunbather has to walk to get to the CC stall. Each crepe costs $4 to make and CC incurs a $150 overhead cost per day to operate a stall. If CC has the option of installing four stalls instead of only one. Should it go ahead and install 4 stalls and why?

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