Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Question: 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 = 10 - 2Q. If your cost of producing bran muffins is C(Q) = 2.0Q, determine the optimal number of bran muffins to sell in a single package and the optimal package price.

A. Optimal package size in Units

B. Optimal package price $

Round your optimal package pirce to two decimal places.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M92598397

Have any Question?


Related Questions in Microeconomics

Question wendys serves its hamburgers fresh off the grill

Question: Wendy's serves its hamburgers "fresh off the grill" This ensures high quality but creates leftover burgers if the staff overestimates the demand. Wendy's solves this problem by using the meat in chili, tacos, a ...

Question a solar-powered personal aircraft with vtol

Question: A solar-powered personal aircraft with VTOL capability has been under development for the past 30 years by a group of engineers and physicists. SPPAV, as the plane will be termed, is expected to be available fo ...

Question a monopoly has costs described by tcq 7500 20q

Question: A monopoly has costs described by TC(Q) = 7500 + 20Q. Demand is described by P = 100 - 0.2Q. What is the monopolist's profit-maximizing quantity (Q)? What is the monopolist's profit-maximizing price (P)? The re ...

Question 1 identify one modern technology and think about

Question: 1. Identify one modern technology and think about its development; In what ways has this technology changed the way you live from both a positive and negative perspective? What future changes might occur that c ...

Question intel a hip factory at their in build a 500000000

Question: Intel a hip factory at their in build a $500,000,000 for They are expanding their business, and they want to new 2017. Additional information is given in the table below. Calculate the weighted index for the ne ...

Question consider a welfare program in which individuals

Question: Consider a welfare program in which individuals who do not earn any income receive $100 in benefits but benefits decrease with earned income: for each dollar earned 50 cents of benefits are withdrawn and this i ...

Question there are analogies between the value of a piece

Question: There are analogies between the value of a piece of land and that of a perpetuity. Assume that the land generates a fixed net income per year, i.e., the value of the crop it produces less the costs of productio ...

Question what are the advantages and disadvantages of

Question: What are the advantages and disadvantages of consumer interviews and market experiments? Please state sources. The response must be typed, single spaced, must be in times new roman font (size 12) and must follo ...

Question in the model of perfect competition all firms are

Question: In the model of perfect competition, all firms are price-takers since they treat price as a market-determined constant. Firm Perfcomp's total revenue function is TR(Q) = P.Q, in which P equals the output price. ...

Question read the wsj article on the attempted

Question: Read the WSJ article on the attempted monopolization of the plastic clothes hanger market in this week's notes. Why does monopolization have the potential to increase prices and profitability significantly in t ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As