Question

6) (10) Soft drink stand problem. Ocean A W B X C Y D Z E Beach Assume the following: Soft drink stands are located at points B and D along a beach of length AE. In equilibrium beachgoers to the left of C will buy from stand B while beachgoers to the right of C will buy from stand D. The distance between points A and B is W. The distance between points B and C is X. The distance between points C and D is Y. The distance between points D and E is Z. Suppose that beachgoers are located uniformly along the beach one at each unit of distance and that each beachgoer buys one soft drink per period. The cost of producing soft drinks is zero but the cost to the beachgoers of carrying the soft drink back to their location is 1 cent per each unit of distance walked (because the soft drink gets warm). Assume that the beach is 100 meters long (AE = 100 meters) and that distance W is 40 meters and distance Z is 10 meters. If the objective is to maximize profit, what price should stand B charge and what price should stand D charge?

          6) (10) Soft drink stand problem.
Ocean
A
W
B
X
C
Y
D
Z
E
Beach
Assume the following:
Soft drink stands are located at points B and D along a beach of length AE.
In equilibrium beachgoers to the left of C will buy from stand B while
beachgoers to the right of C will buy from stand D.
The distance between points A and B is W. The distance between points B
and C is X. The distance between points C and D is Y. The distance between
points D and E is Z.
Suppose that beachgoers are located uniformly along the beach one at each
unit of distance and that each beachgoer buys one soft drink per period. The
cost of producing soft drinks is zero but the cost to the beachgoers of
carrying the soft drink back to their location is 1 cent per each unit of
distance walked (because the soft drink gets warm).
Assume that the beach is 100 meters long (AE = 100 meters) and that
distance W is 40 meters and distance Z is 10 meters.
If the objective is to maximize profit, what price should stand B charge and
what price should stand D charge?

6) (10) Soft drink stand problem.
Ocean
A
W
B
X
C
Y
D
Z
E
Beach
Assume the following:
Soft drink stands are located at points B and D along a beach of length AE.
In equilibrium beachgoers to the left of C will buy from stand B while
beachgoers to the right of C will buy from stand D.
The distance between points A and B is W. The distance between points B
and C is X. The distance between points C and D is Y. The distance between
points D and E is Z.
Suppose that beachgoers are located uniformly along the beach one at each
unit of distance and that each beachgoer buys one soft drink per period. The
cost of producing soft drinks is zero but the cost to the beachgoers of
carrying the soft drink back to their location is 1 cent per each unit of
distance walked (because the soft drink gets warm).
Assume that the beach is 100 meters long (AE = 100 meters) and that
distance W is 40 meters and distance Z is 10 meters.
If the objective is to maximize profit, what price should stand B charge and
what price should stand D charge?

Added by Alexis M.

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