Time left C 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 a 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 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? O a. Throw the bagels away and produce 8 fewer dozen bagels tomorrow. O b. Starting tomorrow, lower the price on all bagels so they will all be sold earlier in the day. Lower the price of the remaining bagels, even if the price falls below $1.00 per dozen. O d. Lower the price of the remaining bagels, but under no circumstances should the price fall below $1.00 per dozen.

Time left C 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 a 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 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? O a. Throw the bagels away and produce 8 fewer dozen bagels tomorrow. O b. Starting tomorrow, lower the price on all bagels so they will all be sold earlier in the day. Lower the price of the remaining bagels, even if the price falls below $1.00 per dozen. O d. Lower the price of the remaining bagels, but under no circumstances should the price fall below $1.00 per dozen.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 42P: A small company that shovels sidewalks and driveways has 100 homes signed up for its services this...

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