ny ork odehs shows Whatis correct or incorrect for the work you have completed s

Question

ny ork odehs shows Whatis correct or incorrect for the work you have completed so far. It does not Indlcate completion Return to 16 The American Baker's Assoclation 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 report 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 bran muffins in packages of three. However, as a result of this new report, a typical consumer's inverse demand for your bran muffins is now P= 6 -0.5Q points If your cost of producing bran muffins is aa = .5 Q, determine the optimal number of bran muffins to sell in a single package and the optimal package price. Instruction: Enter your response for the optimal package price rounded to two decimal places Optimal package size: 11 units Optimal package price: Prex 16 of 25 H: Next> 0 44F

Explanation / Answer

For optimal pricing we have perfect competition market

so, equilibrium condition for perfect market is p= Mc

MC = dTC/dQ= d(.5Q)/dQ= .5

P= MC

6-.5Q= .5

-.5Q= -5.5

Q*= -5.5/-.5= 11

so, P= 6-.5Q*= 6-.5×11=.5 ans

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