Suppose You Are an Analyst for the Coca-Cola Company

Multiple Choice

Suppose you are an analyst for the Coca-Cola Company.An individual's inverse demand for Coca-Cola is estimated to be P = 98 − 4Q (in cents) .If Coca-Cola is produced according to the 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) $120 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