Question

) For humanitarian reasons, Taco Loco decides they would rather make product X than product Y. The dollar amount that they can both increase the price of Y and reduce the price of X by to accomplish this reversal of demand is

Answer 1

81.80 cents.

Step-by-step explanation:

Taco Laco should produce Y but should not produce X. The product X is not beneficial for Taco Laco. If the company decides to reduce the price of product X by 0.82 cents then its optimal product mix will contain zero units of X.