Question
You operate a bakery. You buy cakes from a supplier who charges you $5 per cake.
Government regulations dictate that you can only charge a price between $10 and $20
per cake. Your research shows that if you were to charge $x per cake, you would sell
125 - x2 cakes per week.
a) In order to maximize profi t, what price should you sell the cake for?
b) How much would you charge if there were no government regulations?
Government regulations dictate that you can only charge a price between $10 and $20
per cake. Your research shows that if you were to charge $x per cake, you would sell
125 - x2 cakes per week.
a) In order to maximize profi t, what price should you sell the cake for?
b) How much would you charge if there were no government regulations?
Answers
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