A specialty hospital is for sale. It has a market share of 5 percent and a cost per case of $1,000. Overhead represents 20 percent of its costs. Two bidders have emerged. NSH is a specialty hospital company that does not have any facilities in the area. NSH has a cost per case of $1,200. LSS operates another specialty hospital in the area. LSS has a 10 percent market share and a cost per case of $850 (overhead is 25 percent of costs). You anticipate that LSS will be the winning bidder Group of answer choices because it will have higher markups after the merger. because it should be able to reduce overhead as a result of the merger. because it should be able to maintain or lower costs compared to NSH. All of the above

At a student café, there are equal numbers of two types of customers with the following values. the café owner cannot distinguish between the two types of students because many students without early classes arrive early anyway (i.e., she cannot price-discriminate). students with early classes students without early classes coffee 70 60 banana 51 101 the marginal cost of coffee is 10 and the marginal cost of a banana is 40. the café owner is considering three pricing strategies: 1. mixed bundling: price bundle of coffee and a banana for 161, or just a coffee for 70. 2. price separately: offer coffee at 60, price a banana at 101. 3. bundle only: coffee and a banana for 121. do not offer goods separately. assume that if the price of an item or bundle is no more than exactly equal to a student's willingness to pay, then the student will purchase the item or bundle. for simplicity, assume there is just one student with an early class, and one student without an early class. price strategy revenue from pricing strategy cost from pricing strategy profit from pricing strategy 1. mixed bundling $ $ $ 2. price separately $ $ $ 3. bundle only $ $ $ pricing strategy yields the highest profit for the café owner.

Post test question number 9 for entering the job market

Abus pass costs $5 per week. which of the following equations shows the total cost in dollars, t, of the bus pass for a certain number of weeks, w? t = 5w w = 5t t = 5 + w w = 5 + t