Calculate the optimal price
Course:- Microeconomics
Reference No.:- EM13700173

Assignment Help >> Microeconomics

As a manager of a firm you find the marginal cost of the firm to be $10 and the fixed cost $100. For the range of prices that you are planning to charge, own price elasticity of demand is believed to be –1.25. Calculate the optimal (profit maximizing) price that you should charge. Show all calculations.

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Microeconomics) Materials
Analyze the demands and growing trends in new diseases (e.g., heart disease and cancer) affecting the present U.S. population. Summarize the impact of these demands on avail
In the past couple of years, there was much talk about the possibility of Greece leaving the euro zone and reinstating its earlier currency, the drachma. If Greece did leave t
A monopolist is about to open a new amusement park. A typical visitor is expected to take Q = 8- P rides, where P is the price of a ride. The marginal cost of a ride is two (M
Define these terms in your own words as if explaining them to a business owner and Then, discuss how these terms individually apply to both supply and demand and to a busine
What is your conclusion? Is price gouging a good thing or not? Or is it just necessary? Explain why. Include a word count on each post. All of your posts should sum to a minim
REQUIREMENT:Have you ever heard a one-hundred-year-old novel Around the World in 80 Days by Jules Verne (1828 - 1905)? Now close your eyes and dream the county in the world (e
ECO101 Microeconomics - which type of restaurant would you expect the service to be more prompt and courteous: an expensive gourmet restaurant or an inexpensive cafe? Explai
Interpret this diagram as showing the market demand and supply curves for agricultural products. Suppose that demand is inelastic over the relevant range of prices and suppl