What price should business put on the good

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Reference no: EM131375037

Business x sells goods. It has fixed costs of 150 Million dollars. The incremental cost kan be estimated to 150,000 dollars. The profit maximizing price is 427,000 dollars. The quantity demanded is then 1246.5 units. You estimate that for every 1000 dollar increase in the price the quantity demanded goes down by 4.5 units.

A. What price should Business x put on the good If the incremental cost goes up by 10,000 dollars?

B. What price should Business X put on the good IF fixed costs goes up by 10 million dollars?

Reference no: EM131375037

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