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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Question
am. 133.
![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?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fed8a4294-8c10-4a29-8604-3093d04d6ce8%2F5e150c61-c1f9-4820-b792-625838a29c6a%2Ffi6hi58_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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?
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