could anyone help me with question c? thx
4. Lin Qreal sells 4 different types of lipstick: Infallible, endless, color riche, and never fail. Lin Qreal has the capacity to produce a total of 10,000 lipsticks per month. For the last 16 months, LinOreal kept track of price and sales of each product. Experts believe that infallible and endless are substitutes of each other, and color riche and never fail are substitutes of each other. This means the demand for Infallible is Qi = ai b pi + Ce pe. Similarly, the demand for Endless is Qe = Qe be pe + Ci pi. Similarly, the demands for color riche and never fail are Qc = ac bc Pc + Cn Pn and Qn = an bn Pn + cc Pc. In those equations, a represents the intercept, b and c are the slope in the direction of the respective prices. a. Find the values of the intercept and the slopes for the demand functions of each of the lipsticks using the data given in the Excel file. (Remember regression???:) b. The variable cost for each product is: infallible, $2.0, endless, $2.20, color riche, $2.30, and never fail, $2.40. Determine the price of each lipstick that will maximize profits using the demand functions found in step a. c. Let's say Lin Qreal can increase the capacity for $20,000 for each thousand units added. What is the optimal capacity level? 4. Lin Qreal sells 4 different types of lipstick: Infallible, endless, color riche, and never fail. Lin Qreal has the capacity to produce a total of 10,000 lipsticks per month. For the last 16 months, LinOreal kept track of price and sales of each product. Experts believe that infallible and endless are substitutes of each other, and color riche and never fail are substitutes of each other. This means the demand for Infallible is Qi = ai b pi + Ce pe. Similarly, the demand for Endless is Qe = Qe be pe + Ci pi. Similarly, the demands for color riche and never fail are Qc = ac bc Pc + Cn Pn and Qn = an bn Pn + cc Pc. In those equations, a represents the intercept, b and c are the slope in the direction of the respective prices. a. Find the values of the intercept and the slopes for the demand functions of each of the lipsticks using the data given in the Excel file. (Remember regression???:) b. The variable cost for each product is: infallible, $2.0, endless, $2.20, color riche, $2.30, and never fail, $2.40. Determine the price of each lipstick that will maximize profits using the demand functions found in step a. c. Let's say Lin Qreal can increase the capacity for $20,000 for each thousand units added. What is the optimal capacity level
