16. Benji runs a coffee house. His customers love pumpkin spiced lattes, but will only drink them if they are produced using a specific ratio of spiced coffee and sweet whipped cream. To produce one latte, q, the firm needs to use 0.25 cup of spiced coffee, S, and 0.5 cup of cream, C. The price of 1 cup of spiced coffee is Ps = 1, and the price of I cup of cream is pc = 1. The firm will produce pumpkin spiced lattes using the cost-minimizing combination of coffee and cream. Which of the following equations describes the optimal mix of spiced coffee and cream? a. S=C b. S=0.25C c. S= 4C d. S=0.5C S. S= 2C
16. Benji runs a coffee house. His customers love pumpkin spiced lattes, but will only drink them if they are produced using a specific ratio of spiced coffee and sweet whipped cream. To produce one latte, q, the firm needs to use 0.25 cup of spiced coffee, S, and 0.5 cup of cream, C. The price of 1 cup of spiced coffee is Ps = 1, and the price of I cup of cream is pc = 1. The firm will produce pumpkin spiced lattes using the cost-minimizing combination of coffee and cream. Which of the following equations describes the optimal mix of spiced coffee and cream? a. S=C b. S=0.25C c. S= 4C d. S=0.5C S. S= 2C
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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I need 16 and 17 please I believe they are both e but I am unsure and wanna make sure i did this correctly, please! Thank you!
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