Optimal number to sell in single package and optimal package


Problem: Al Ain Dairy has reported that its annual sales on dairy products have increased by 20 percent, driven primarily by a 40 percent increase in the demand for camel milk. The increase was largely attributed to a news report describing the health benefits of camel milk. You are the manager of a rival dairy farm that sells camels milk in small bottle of 250ml and you would like to know the optimal number of bottles to sell in a single package. Suppose a typical consumer's inverse demand for you camel milk is P = 11-2Q. If your cost of producing camel's milk is C(Q) = Q, determine the optimal number of bottles to sell in a single package and the optimal package price.

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Managerial Economics: Optimal number to sell in single package and optimal package
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