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 10 cents per ounce to produce.Begin by assuming that the manufacturer has full information about types because adults only by fiber-rich cereal and children only buy sweet cereal (with marshmallows).
A) 3 ounces of fiber cereal sold to adults for 48 cents; 4 ounces of sweet cereal sold to children for $1.12.
B) 3 ounces of fiber cereal sold to adults for 36 cents; 4 ounces of sweet cereal sold to children for 64 cents.
C) 5 ounces of fiber cereal sold to adults for 60 cents; 5 ounces of sweet cereal sold to children for $1.20.
D) 5 ounces of fiber cereal sold to adults for 20 cents; 5 ounces of sweet cereal sold to children for 40 cents.

Question

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 10 cents per ounce to produce.Begin by assuming that the manufacturer has full information about types because adults only by fiber-rich cereal and children only buy sweet cereal (with marshmallows).
A) 3 ounces of fiber cereal sold to adults for 48 cents; 4 ounces of sweet cereal sold to children for $1.12. 
B) 3 ounces of fiber cereal sold to adults for 36 cents; 4 ounces of sweet cereal sold to children for 64 cents. 
C) 5 ounces of fiber cereal sold to adults for 60 cents; 5 ounces of sweet cereal sold to children for $1.20. 
D) 5 ounces of fiber cereal sold to adults for 20 cents; 5 ounces of sweet cereal sold to children for 40 cents.

Quizplus · Accepted Answer

The Answer of 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 10 cents per ounce to produce.Begin by assuming that the manufacturer has full information about types because adults only by fiber-rich cereal and children only buy sweet cereal (with marshmallows).
A) 3 ounces of fiber cereal sold to adults for 48 cents; 4 ounces of sweet cereal sold to children for $1.12. 
B) 3 ounces of fiber cereal sold to adults for 36 cents; 4 ounces of sweet cereal sold to children for 64 cents. 
C) 5 ounces of fiber cereal sold to adults for 60 cents; 5 ounces of sweet cereal sold to children for $1.20. 
D) 5 ounces of fiber cereal sold to adults for 20 cents; 5 ounces of sweet cereal sold to children for 40 cents.

A Ready-To-Eat Cereal Manufacturer Faces Two Types of Consumers,adults and Children,having