Suppose You Are an Analyst for the Coca-Cola Company

question 4

Multiple Choice

Suppose you are an analyst for the Coca-Cola Company.An individuals' inverse demand for Coca-Cola is estimated to be P = 98 - 4Q (in cents) .If Coca-Cola is produced according to the following cost function C(Q) = 1,000 + 2Q (in cents) , compute the optimal price and the number of cans to sell as a single package.

• A)$1200 per package and 12 cans.
• B)$12 per package and 24 cans.
• C)$11.52 per package and 12 cans.
• D)$15 per package and 16.67 cans.

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Definitions:

Purchase Price

The amount of money paid to acquire a good or service, including the base cost plus any additional charges or fees.

Management Philosophy

A belief system or framework that guides the managerial decisions, actions, and behaviors of an organization.

Maximizing Customer Value

The process of increasing the benefits a customer receives from a product or service relative to its cost, enhancing customer satisfaction and loyalty.

Eliminating Waste

The process of identifying and removing unnecessary materials, tasks, and processes to improve efficiency in operations.