Consider yourself an entrepreneur at the Mall selling 3000$0.75$1.00250020025 donuts a day at each.

Consider yourself an entrepreneur at the Mall selling 3000$0.75$1.00250020025
donuts a day at each. When you raised the price to each, the sale dropped to donuts per day. Now, assume that there is a linear relationship between the price and number of donuts sold. Further assume that there is a fixed cost (overhead) of $ per day, and the cost of each donut is ¢. What would be the price of the donut to maximize the profit? (Hint: Since we assume a linear relationship between price, p, and the number of dounats sold, n, we need first to determine the function n(p), n(p) = a +b*p. Then, determine an optimal unit price that maximizes the profit.)

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