The 50 studens in Dunnell\'s Boardinghouse have formed a club to buy a coffee ve
ID: 1177178 • Letter: T
Question
The 50 studens in Dunnell's Boardinghouse have formed a club to buy a coffee vending machin that costs $500. They curently pay $0.75 per cup at the cafe next door, and they figure that coffee from the machine will cost them just $0.25 per cup. The problem is that no one except Marya has $10 to pay his or her share of the $500. Marya has agreed either (i) to lend each of the other students $10, in which case they can get coffee at $0.25 per cup immediately; or (ii) to buy the machine herself and charge $0.75 per cup until she recovers the $490. Only then will the price dropt to $0.25 per cup. Which option would you recommend to these students?
Explanation / Answer
if they go for the second option where marya charges then 0.75 till she recovers her 490 $ . This way Marya will not have to depend upon the others to get her money back. Since people are anyhow going to have coffee , she will recover her value very quickly ...but this leads to one problem of uneven distribution of money among students.. as some may have more cups than others .. in the end these students having more intake of coffee will end up paying more than $10 for the machine.. so we cant go with this scheme.. as its not fair for all students .
so marya is supposed to lend them money to buy the vending machine ..
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