2. There are three student canteens serving different types of foods located at the campus. Table below shows the total costs of the catering services according to the number of students served. Number of students served Smile Canteen Rainbow Canteen Happy Canteen 500 15000 16000 19000 28000 32000 58000 108000 40000 1000 2000 50000 80000 4000 80000 168000 6000 114000 156000 258000 (a) Comment on the scale of production of these three canteens. (b) The owner of Happy Canteen decides to sell the business. The owner of Smile Canteen shows interest in it and has done an estimate on the total costs of running the two canteens under one ownership. Based on the estimates below, do you recommend the owner of the Smile Canteen to pick up the business of Happy Canteen? Explain. | Number of students served in each canteen "Smile plus Happy" Canteen 500 40000 1000 65000 2000 110000 4000 215000 6000 390000
2. There are three student canteens serving different types of foods located at the campus. Table below shows the total costs of the catering services according to the number of students served. Number of students served Smile Canteen Rainbow Canteen Happy Canteen 500 15000 16000 19000 28000 32000 58000 108000 40000 1000 2000 50000 80000 4000 80000 168000 6000 114000 156000 258000 (a) Comment on the scale of production of these three canteens. (b) The owner of Happy Canteen decides to sell the business. The owner of Smile Canteen shows interest in it and has done an estimate on the total costs of running the two canteens under one ownership. Based on the estimates below, do you recommend the owner of the Smile Canteen to pick up the business of Happy Canteen? Explain. | Number of students served in each canteen "Smile plus Happy" Canteen 500 40000 1000 65000 2000 110000 4000 215000 6000 390000
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section: Chapter Questions
Problem 3PA
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax