Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I can't figure out part two to this question. The optimal packaging size is 6 units, but I am not sure the optimal packaging size

I can't figure out part two to this question. The optimal packaging size is 6 units, but I am not sure the optimal packaging size price.

image text in transcribed
The American Baker's Association reports that annual sales of bakery goods last year rose 15 percent, driven by a 50 percent increase in the demand for bran muffins. Most of the increase was attributed to a report that diets rich in bran help prevent certain types of cancer. You are the manager of a bakery that produces and packages gourmet bran muffins, and you currently sell bran muffins in packages of three. However, as a result of this new report, a typical consumer's inverse demand for your bran muffins is now P= 11 - 1.5Q. If your cost of producing bran muffins is C(Q) = 2.0Q, determine the optimal number of bran muffins to sell in a single package and the optimal package price. Instruction: Enter your response for the optimal package price rounded to two decimal places. Optimal package size: 6 units Optimal package price: $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Legal Environment

Authors: Jeffrey F Beatty, Susan S Samuelson

3rd Edition

0324537115, 9780324537116

More Books

Students also viewed these Economics questions

Question

What is the homeostatic value of flexor reflexes?

Answered: 1 week ago

Question

What factors contribute most to the comprehension of read text?

Answered: 1 week ago

Question

4. What means will you use to achieve these values?

Answered: 1 week ago