Suppose that Mirinda uses a new type of vending machine in Bahrain that changes a price...

 

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Suppose that Mirinda uses a new type of vending machine in Bahrain that changes a price according to the outside temperature. If it is considered that the hot months in Bahrain occur when minimum daily temperature is 20 degrees centigrade or higher such that we can define hot months as extending from April till November 1. This means that hot months extend over 8 months whereas cool months extend over 4 months. On hot days demand is Q = 700 2P where on cool days demand is Q = 450 - 2P and MC = 20. Instructions: a. What price should the machine charge for a soft drink in hot days? What price should the machine charge for a soft drink on cool days? b. If Mirinda uses a traditional machine that is simply programmed to charge the same price regardless of the weather, what price should it set? c. Compare Mirinda's daily profit from a weather-sensitive machine to the traditional, uniform pricing machine. Suppose that Mirinda uses a new type of vending machine in Bahrain that changes a price according to the outside temperature. If it is considered that the hot months in Bahrain occur when minimum daily temperature is 20 degrees centigrade or higher such that we can define hot months as extending from April till November 1. This means that hot months extend over 8 months whereas cool months extend over 4 months. On hot days demand is Q = 700 2P where on cool days demand is Q = 450 - 2P and MC = 20. Instructions: a. What price should the machine charge for a soft drink in hot days? What price should the machine charge for a soft drink on cool days? b. If Mirinda uses a traditional machine that is simply programmed to charge the same price regardless of the weather, what price should it set? c. Compare Mirinda's daily profit from a weather-sensitive machine to the traditional, uniform pricing machine.

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The detailed answer for the above question is provided below a Hot Days Q 700 2P P 350 Q2 Ther... View the full answer