If your cost of producing bran muffins is C(Q) = 0.5Q, determine the optimal number of bran muffins to sell in a single package and the optimal package price?

What is the rate of return from t to t+1 on a bond that is priced at $2,000 initially, provides a coupon payment at time t+1 of $40, and has its price rise to $2,100 at time t+1? 
January 4, 2018
MBA 565 module 2 Quiz
January 4, 2018

If your cost of producing bran muffins is C(Q) = 0.5Q, determine the optimal number of bran muffins to sell in a single package and the optimal package price?

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 370 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 – 1.5Q. If your cost of producing bran muffins is C(Q) = 0.5Q, determine the optimal number of bran muffins to sell in a single package and the optimal package price?

 

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