Answered: In St. Catharines there are three…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Transcribed Image Text:In St. Catharines there are three restaurants, Art's, Bob's and Cathy's with the attribute ratings and prices given below. Illustrate the efficiency frontier. Which restaurant(s) will you as a consumer with $ 30 income select? Assume the restaurant meals are totally divisible and that you can attend more than one. Attributes per meal [Cuisine, Decor] per meal [9,2] [4,4] 114] Brand Price Art's (A) Bob's (B) Cathy's (C) Cuisine $10.00 S 6.00 $5.00 + 30 28 26 24 22 20 18 16 14 12 10 2 4 6. 8 10 12 14 16 18 20 22 24 26 28

Selected Restaurant(s)
and
Number of meals from each restaurant
from_ and
from
How much would you spend on each restaurant? $
on and $
on
If you could only select one restaurant which would it be? Why?
Assuming that the consumer can select a combination of two restaurants, what would
restaurant B have to lower its price to for you to select only it?
What percentage amount would restaurant B have to improve both their cuisine and décor for
you to select only it?
_%

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