A ready to eat cereal manufacturer faces two types of consumers adults
A ready-to-eat cereal manufacturer faces two types of consumers, adults and children, having the following schedule of gross surpluses for each additional unit of cereal consumed.


Cereal costs $0.15 per ounce to produce. The manufacturer has full information about types because adults hate sweet children's cereal and children hate the fiber-filled adult cereal. What is the optimal bundle to offer adults and two children in this full-informationsetting?
Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help