Cici's Pizza Most pizza restaurants charge by the pie or by the ...

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Cici's Pizza Most pizza restaurants charge by the pie or by the slice. Cici's has found a niche by charging a flat rate for the meal and allowing as many visits to the pizza buffet as the customer desires. How does this affect the make-up of its clientele?

Question 2

A business owner makes 50 items a day. Each day he/she contributes 8 hours to produce those items. If hired, elsewhere he/she could have earned 10 an hour. The item sells for 10 each. Production does not stop during weekends. If the explicit costs total 10,00 . for 30 days, the accounting profit for the month equals:
 a. 1,760
  b. 2,240
  c. 11,760
  d. 5,000

[Brummell1998]

Answer to Question 1

Cici's pricing scheme is particularly attractive for patrons who know they will be eating a lot of pizza and not so attractive to patrons who eat sparingly. As a consequence the population that selects into patronizing Cici's tends to include many larger men or teenagers who come after a sporting event.

Answer to Question 2

d

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Gracias!

[alexanderhamilton]

TYSM