6. The Crispy-Cola Corp. (CCC) wants to expand into selling its cans of cola via vending machines and is considering renting "smart" vending machines that can be programmed to change the price of a can of Crispy-Cola according to the outside temperature. Suppose that the temperature can be either "High" or "Low". On "High" temperature days, the demand is Q = 280-2p, where Q is the number of cans of Crispy-Cola per day that are sold per machine and p is the price per can in cents. On "Low" temperature days, the demand is Q = 160- 2p. There are an equal number of "High" and "Low" days during a calendar year. The marginal cost of producing and delivering a can of Crispy-Cola to vending machine locations is 20 cents.

6. The Crispy-Cola Corp. (CCC) wants to expand into selling its cans of cola via vending machines and is considering renting "smart" vending machines that can be programmed to change the price of a can of Crispy-Cola according to the outside temperature. Suppose that the temperature can be either "High" or "Low". On "High" temperature days, the demand is Q = 280-2p, where Q is the number of cans of Crispy-Cola per day that are sold per machine and p is the price per can in cents. On "Low" temperature days, the demand is Q = 160- 2p. There are an equal number of "High" and "Low" days during a calendar year. The marginal cost of producing and delivering a can of Crispy-Cola to vending machine locations is 20 cents.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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