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=8 050 If your cost of producing bran muffins is CQ)-2.5Q determine the optimal number of bran muffins to sell in a single package and the optimal package price. Instructions: Enter your response for the optimal package price rounded to two decimal places. Optimal package size:[ Optimal package price: S units

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=8 050 If your cost of producing bran muffins is CQ)-2.5Q determine the optimal number of bran muffins to sell in a single package and the optimal package price. Instructions: Enter your response for the optimal package price rounded to two decimal places. Optimal package size:[ Optimal package price: S units

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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