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The answers so I can make sure I am on the right path I'mablem I :...
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I'mablem I : Subway , the fast- food chain. Sells foot- long sandwiches for $5 cach . However , Subway still sells G-inch sandwiches for considerably more than $ 2. 50 each , that is , at a higher price per inch of sub . ( a ) Give a way that in theory you could make money from Subway's pricing practices ?" Would this method work in practice ?" What does this tell you about the limits of arbitrage ? I bj In many of our price discrimination examples , WE think that businesses try to break customers into two groups* More price - sensitive and less price - sensitive . What kinds of Subway customers fit into the first group ?" Into the second ?" Explain your choices . . Busy lawyers with 20 - minute lunches College students - Health - conscious soccer moms . Long - haul truck drivers
The answers so I can make sure I am on the right path
This question was created from Spring_2017_Eco_1001_Syllabus
Answered by deebarot
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