ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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In the Current Events article, it mentioned how DoorDash is trying to increase its amount of subscription users (DashPass).

The price for DashPass is $10 per month.

Assume the demand for regular DoorDash deliveries (non-subscription) is:

P = 20 - 0.04Q

where P is the delivery fee on the order.

Assume the goal of the company is to maximize combined revenue from both regular deliveries (delivery fees) and the subscription fees (DashPass).

A different manager suggest pricing the deliveries at $14 per delivery. Which of the following actions would you select as a manager?

Group of answer choices
Advise that it should be a $10 fee per delivery
Advise that the$14 delivery fee is too low
Advise that it should be a $20 fee per delivery
Agree that $14 per delivery is optimal in this situation
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