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14 Suppose that 3000 people live along the main street of Dinkytown (suppose they are evenly distributed). There is a single doughnut producer, Krispy Kreme,
14 Suppose that 3000 people live along the main street of Dinkytown (suppose they are evenly distributed). There is a single doughnut producer, Krispy Kreme, in Dinkytown and it locate as many doughnut stands as they want wherever they want along the one-mile street. Every day each person gets a craving for one Krispy Kreme doughnut, for which he or she would be willing to pay up to $20. A person who walks the distance a to the Krispy Kreme store experiences a (round-trip) treasportation cost of Str, that is, the roundtrip transportation cost is St per mile. Suppose that each Krispy Kreme doughnut costs the store c.=$5, and that the fixed cost of having one doughnut stand is SF. If f -10 and F = 150, then how many doughnut stands must Krispy Kreme have to maximize its profits? Krispy Kremer must have type your answer. doughnut stands
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