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You have been chosen to consult for your local girl scout troop with regards to cookie sales. Currently cookies sell for $8 a box (let's assume they are all the same price) and cost $2 per box to produce. The price-deman function looks as follows: Demand per customer = 35 - 2.5*Price.
The $8 price is the profit optimizing price for the current sales model of $8 per box. Determine the following:
What is the profit per customer currently?
What would the profit per customer be if you introduced a two part tariff, where by you charge a fixed cost to the customer to place an order and then a separate price per box?
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