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 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.© BrainMass Inc. brainmass.com October 9, 2019, 9:15 pm ad1c9bdddf
P = 3 -.5Q
Cost = Q
Total Revenue = Price x Quantity
= (3-.5Q) ...