The demand for Healthy Bars, a health snack bar, is Qd = 10 - (2 × P) and Healthy Bars has a constant average cost of $3 per snack bar. If Healthy Bars wants to package their bars to create an all-or-nothing offer and puts the profit-maximizing number of bars into each package and charges the profit-maximizing price for the package, what is their profit?
A) $16 B) $12 C) $6 D) $4
D) $4
You might also like to view...
The slope of the budget line
a. always equals 1. b. equals income divided by price. c. equals the ratio of the prices. d. decreases as we move from left to right.
The key dimension of deepening human capital in the U.S. economy focuses more on a higher average level of work experience than on additional education and training
a. True b. False Indicate whether the statement is true or false
When customers buy the exact amount of goods that producers are selling at a specific price, the __________ price exists.
A. market B. equilibrium C. unit D. production
Economies of scale arise when
A. all inputs increase at the same rate. B. all inputs increase by the same amount. C. one input increases and the others are held constant. D. one input increases and the others decrease.