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Q. The American Baker's Association reports which annual sales of bakery goods last yr rose 15 percent, driven by a 50 percent increase in the demand for bran muffins. Most of the increase was attributed to a report which diets rich in bran help prevent certain types of cancer. You're the manager of a bakery which produces also packages gourmet bran muffins also you currently sell bran muffins in packages of three. Elucidate however, as a result of this new report, a typical consumer's inverse demand for your bran muffins is now P = 3 - .5Q. If your cost of producing bran muffins is C(Q) = Q, Conclude the optimal number of bran muffins to sell in a single package also the optimal package price. Elucidate how all step by step calculations to arrive at solution.
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Assume that every driver faces a 1% probability of an automobile accident every year. An accident will, on average, cost each driver $10,000.
Smith has been trying to sell his house for 6 months although so far there are no purchasers. Draw the market for Smith's house.
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