Yogi Maharaj, Inc. is one of the leading retailers of specialty donuts with stores in most major US cities. They recently changed from a price of $3.80 per dozen donuts, at which they sold 19,700 dozen donuts per week to a new, higher price of $4.77 per dozen donuts. At this new price point, Yogi has sold 15,700 donuts. Variable costs per dozen donuts are estimated at $0.56. What is the optimal (profit maximizing) price for a dozen of Yogi's donuts?

Yogi Maharaj, Inc. is one of the leading retailers of specialty donuts with stores in most major US cities. They recently changed from a price of $3.80 per dozen donuts, at which they sold 19,700 dozen donuts per week to a new, higher price of $4.77 per dozen donuts. At this new price point, Yogi has sold 15,700 donuts. Variable costs per dozen donuts are estimated at $0.56. What is the optimal (profit maximizing) price for a dozen of Yogi's donuts?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter11: Price And Output Determination: Monopoly And Dominant Firms

Section: Chapter Questions

Problem 6E

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