Determining the yearly demand for wine

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The following three questions are all based on the following information about William's Wines (WW).

1. Assume that each consumer in Will's town has the following yearly demand for wine Q = 100 - 2P. The cost to produce wine is C = 145 + 5Q.  Will wants to start a wine club with an annual membership fee and a per bottle price.  Local ordinances dictate that wine must be sold for at least $15 per bottle. 

What will be the membership fee and per bottle price that maximize profits for WW given this restriction?

2. Remember William's Wines faces a yearly demand for wine or Q = 100 - 2P and the cost to produce wine is C = 145 + 5Q. Williams is starting a wine club with a membership fee and per bottle price. For the typical consumer how much profit does WW lose because of the ordinance that restricts the price of a bottle to at least $15?

3. Remember William's Wines faces a yearly demand for wine or Q = 100 - 2P and the cost to produce wine is C = 145 + 5Q.  Williams is starting a wine club with a membership fee and per bottle price.  For the typical consumer how much profit does WW lose because of the ordinance that restricts the price of a bottle to at least $15?

Reference no: EM131090680

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