Scenario 17-1 ​

Multiple Choice

Scenario 17-1
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Assume that a local restaurant sells two items, salads and steaks. The restaurant's only two customers on a particular day are Mr. Carnivore and Ms. Leafygreens. Mr. Carnivore is willing to pay $20 for a steak and $7 for a salad. Ms. Leafygreens is willing to pay only $8 for a steak, but is willing to pay $12 for a salad. Assume that the restaurant can provide each of these items at zero marginal cost.
-Refer to Scenario 17-1. If the restaurant is unable to use tying, what is the profit-maximizing price to charge for a salad?

A) $16
B) $14
C) $12
D) $7