(Table: Value Meals) the Table Shows James and Chris' Willingness

Essay

(Table: Value Meals) The table shows James and Chris' willingness to pay at a local fast-food restaurant. Use this information to answer the following questions: a. If the fast-food restaurant is trying to maximize profits by pricing separately, what price will they charge for a cheeseburger? French fries? Soft drink? b. Assuming that it costs the restaurant only $0.10 to produce a cheeseburger, $0.15 to produce one order of french fries, and $0.05 to produce a soft drink, what will be their total profits if they price separately using the prices determined above? c. Suppose the restaurant is trying to decide whether or not to offer a value meal, which would include a cheeseburger, french fries, and a soft drink. What price should they charge for this value meal? Would profits be higher or lower than if the restaurant sets prices individually? Explain.