Question
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
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 nowP= 7 -0.5Q.
If your cost of producing bran muffins isC(Q) = 2.5Q,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:__________units
Optimal package price: $________
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