some pointless, simple econ. questions

[quarrel]

Let's say you run a sandwich shop. It costs you $1 in ingredients to make a sandwich, plus a flat $5 per day for rent and the lights. You're working alone and they're really fancy sandwiches, so you can only make 10 per day.

The number of sandwiches you can sell in a day depends on what you charge for them:

$0	350
$1	40
$2	25
$3	16
$4	10
$5	8
$6	5
$7	0

Questions! Any prices will be in whole dollars.

1. What is the equilibrium price for your sandwiches?

2. What is their market value?

3. What's the most profitable price you can ask?

4. What's the most ethical price you can ask?

Simple answers tomorrow!

Comments

[shaterri]

Lots of questions, but the big one is: what does 'ethical' mean here? Is that a specific technical term, or are you using it to mean something like 'lowest price you can charge while still staying in business'?

[quarrel]

Realizing that question is not well-defined is the point.