Suppose you are an analyst for the Coca-Cola Company. An individuals' inverse demand for Coca-Cola is estimated to be P= 98- 4Q (in cents). If Coca-Cola is produced according to the following cost function C(Q)= 1,000+ 2Q (in cents), compute the optimal price and the number of cans to sell as a single package. O $1200 per package and 12 cans O $11.52 per package and 12 cans O $15 per package and 16.67 cans O $12 per package and 24 cans

Suppose you are an analyst for the Coca-Cola Company. An individuals' inverse demand for Coca-Cola is estimated to be P= 98- 4Q (in cents). If Coca-Cola is produced according to the following cost function C(Q)= 1,000+ 2Q (in cents), compute the optimal price and the number of cans to sell as a single package. O $1200 per package and 12 cans O $11.52 per package and 12 cans O $15 per package and 16.67 cans O $12 per package and 24 cans

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Suppose you are an analyst for the Coca-Cola Company. An individuals' inverse demand for
Coca-Cola is estimated to be P = 98- 4Q (in cents). If Coca-Cola is produced according to the
following cost function C(Q)= 1,000+ 2Q (in cents), compute the optimal price and the
number of cans to sell as a single package.
O $1200 per package and 12 cans
O $11.52 per package and 12 cans
O
$15 per package and 16.67 cans
O $12 per package and 24 cans

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