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David Roberts started a small business buying tomatoes from growers in central Indiana and delivering them to a farmer's market in downtown Chicago each week.
David Roberts started a small business buying tomatoes from growers in central Indiana and delivering them to a farmer's market in downtown Chicago each week. He purchases tomatoes for $0.50 per pound. The demand for fresh tomatoes is highly elastic with a coefficient of 4.6. The demand for fresh tomatoes can be defined by the equation: Q=3600P4.6. He can haul a maximum of 8,000 pounds in his truck. At what price should David sell his tomatoes in order to maximize his profit? a. Formulate an NLP to determine the optimal price for fresh tomatoes. b. Create a spreadsheet model to find the optimal price. Turn in your spreadsheet model with your homework. Optimal Price: Optimal Profit
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