CEE_594_4 - CEE 594 ECNS 494 Problem Set 4(Due Wednesday...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
CEE 594 / ECNS. 494 Problem Set # 4 (Due Wednesday November 29 in Lecture) 1. Briefly describe, as the inventor of a new consumer product, what the key attributes are of each of the following four market structures that are important for identifying the market environment in which you will be operating. a. Monopoly b. Perfect Competition c. Monopolistic Competition d. Oligopoly 2. Under the terms of the current contractual agreement, Burger Queen (BQ) is entitled to 20 percent of the revenue earned by each of its franchises. BQ’s best-selling item is the Slopper (it slops out of the bun). BQ supplies the ingredients for the Slopper (bun, meat, etc.) at cost to the franchise. The franchisee’s average cost per Slopper (including ingredients, labor cost, and so on) is $.80. At a particular franchise restaurant, weekly demand for Sloppers is given by P = 3.00 - Q/800. a. If BQ sets the price and weekly sales quantity of Sloppers, what quantity and price would it set? How much does BQ receive? What is the franchisee’s net profit? b. Suppose the franchise owner sets the price and sales quantity. What price and quantity will the owner set? How does the total profit earned by the two parties
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This homework help was uploaded on 02/13/2008 for the course CEE 5940 taught by Professor Schuler during the Fall '07 term at Cornell.

Page1 / 2

CEE_594_4 - CEE 594 ECNS 494 Problem Set 4(Due Wednesday...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online