In St. Catharines there are three restaurants, Art's, Bob's and Cathy's with the attribute ratings and prices given below. Illustrate the efficiency frontier. Which restaurant(s) will you as a consumer with $ 30 income select? Assume the restaurant meals are totally divisible and that you can attend more than one. Price per meal $10.00 $ 6.00 Brand Art's (A) Bob's (B) Cathy's (C) Attributes per meal [Cuisine, Decor] [9,2) [4,4] 114] $5.00 Cuisine
In St. Catharines there are three restaurants, Art's, Bob's and Cathy's with the attribute ratings and prices given below. Illustrate the efficiency frontier. Which restaurant(s) will you as a consumer with $ 30 income select? Assume the restaurant meals are totally divisible and that you can attend more than one. Price per meal $10.00 $ 6.00 Brand Art's (A) Bob's (B) Cathy's (C) Attributes per meal [Cuisine, Decor] [9,2) [4,4] 114] $5.00 Cuisine
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter15: Strategic Games
Section: Chapter Questions
Problem 4MC
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![In St. Catharines there are three restaurants, Art's, Bob's and Cathy's with the attribute ratings and
prices given below. Illustrate the efficiency frontier. Which restaurant(s) will you as a consumer with
$ 30 income select? Assume the restaurant meals are totally divisible and that you can attend more
than one.
Attributes per meal
[Cuisine, Decor] per meal
[9,2]
[4,4]
114]
Brand
Price
Art's (A)
Bob's (B)
Cathy's (C)
Cuisine
$10.00
S 6.00
$5.00
+
30
28
26
24
22
20
18
16
14
12
10
2
4
6.
8
10
12
14
16
18
20
22
24
26
28](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F57a3d338-de20-4ea6-aab9-3f01357cec02%2Fb354aebe-ec66-4086-baee-fcbca91b97bf%2Fuul5r_processed.jpeg&w=3840&q=75)
Transcribed Image Text:In St. Catharines there are three restaurants, Art's, Bob's and Cathy's with the attribute ratings and
prices given below. Illustrate the efficiency frontier. Which restaurant(s) will you as a consumer with
$ 30 income select? Assume the restaurant meals are totally divisible and that you can attend more
than one.
Attributes per meal
[Cuisine, Decor] per meal
[9,2]
[4,4]
114]
Brand
Price
Art's (A)
Bob's (B)
Cathy's (C)
Cuisine
$10.00
S 6.00
$5.00
+
30
28
26
24
22
20
18
16
14
12
10
2
4
6.
8
10
12
14
16
18
20
22
24
26
28
Transcribed Image Text:Selected Restaurant(s)
and
Number of meals from each restaurant
from_ and
from
How much would you spend on each restaurant? $
on and $
on
If you could only select one restaurant which would it be? Why?
Assuming that the consumer can select a combination of two restaurants, what would
restaurant B have to lower its price to for you to select only it?
What percentage amount would restaurant B have to improve both their cuisine and décor for
you to select only it?
_%
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