+1-415-670-9189
info@expertsmind.com
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
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Microeconomics) Materials
The government is considering a policy to reduce air pollution by restricting the use of "dirty" fuels by factories. In deciding whether to implement the policy, how, if at
What is the purpose of the policy Why is the policy necessary The welfare of consumers, producers, and society (the winners and losers) before and after the policy The distr
Determine the rate of can rent capital and marginal productivity of labor at its new targeed level of output. To minimize the cost, the car company should hire capital and l
What is the relationship of the cost of producing output and the money receipts of businesses when there are only consumer expenditures? What should happen to the level of out
What are the two components of the medical care price index? How does disease impact our "production" or health? How does our consumption of goods impact our production of hea
The USA Air Crop makes fighter jets, but competes with the French for the world market.  The government of the USA wants to “smash” the competition so it decides on a subsidy
Identify an organization which you have access to some information concerning financial data, staffing and human resource systems, marketing and customer relations, informat
A company has purchased a railroad car to transport coal from the mines to its power plants. The company can depreciate the car using MACRS method. The book value of the car a