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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*
Consider the total cost and the total revenue given in the table below:
How do the payoffs change?
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Prepare a conclusion that explains what you learned about the topic and what conclusion you draw from your research on the topic.
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