The american baker’s association reports that annual sales of bakery goods last year rose 15 percent, driven by a 50 percent increase in the demand for bran muffins. most of the increase was attributed to a report that diets rich in bran prevent certain types of cancer. you are the manager of a bakery that produces and packages gourmet bran muffins, and you currently sell bran muffins in packages of three. however, as a result of this new report, a typical consumer’s inverse demand for your bran muffins is now p = 8 - 1.5q. if your cost of producing bran muffins is c(q) = 2.0q, determine the optimal number of bran muffins to sell in a single package and the optimal package price.

You are chairman of the board of a successful technology firm. there is a nominal federal corporate tax rate of 35 percent, yet the effective tax rate of the typical corporation is about 12.6%. your firm has been clever with use of transfer pricing and keeping money abroad and has barely paid any taxes over the last 5 years; during this same time period, profits were $28 billion. one member of the board feels that it is un-american to use various accounting strategies in order to avoid paying taxes. others feel that these are legal loopholes and corporations have a fiduciary responsibility to minimize taxes. one board member quoted what the ceo of exxon once said: “i’m not a u.s. company and i don’t make decisions based on what’s good for the u.s.” what are the alternatives? what are your recommendations? why do you recommend this course of action?

Search engines generate revenue through pay-per-click (each time a user clicks a link to a retailer’s website); pay-per-call (each time a user clicks a link that takes the user to an online agent waiting for a call); or pay-per-conversion (each time a website visitor is converted to a customer)

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