Determine the optimal package price

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The American Baker's Association reports that yearly sales of bakery goods last year rose 15%, driven by a 50% increase in the demand for bran muffins. Most of the increase was attributed to a reprot 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 typical consumer's inverse demand for your bran muffins is now P = 3-.5Q. If your cost of producing bran fuffins is C(Q) = Q, determine the optimal number of bran fuffins to sell in a single package and the optimal package price.

Reference no: EM1371830

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