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Assume that each consumer in Will's town has the following yearly demand for wine: Q = 120 - 2P. The cost to produce wine is
Assume that each consumer in Will's town has the following yearly demand for wine: Q = 120 - 2P. The cost to produce wine is C = 150 + 10Q. Will wants to start a wine club with an annual membership fee and a per-bottle price. Local ordinances dictate that wine must be sold for at least $20 per bottle.
What will be the fee and per-bottle price that maximize profits for WW given this restriction?
Give the price per bottle.
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