What would you recommend if the sole goal of your firm

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Reference no: EM13323919

Your business currently has two customers with the following individual demand curves:

Customer One’s Demand Curve: P = 10 -2Q

Customer Two’s Demand Curve: P = 20 – 2Q

Your company is trying to decide whether to raise the price of your product from $$7.5 by $0.50 or lower it by $0.50. Given the above information what would you recommend if the sole goal of your firm is to increase the total revenue?

a. The firm should increase the price by $0.50.

b. The firm should decrease the price by $0.50.

c. The firm could increase their total revenue if they increase or decrease the price by $0.50 from its initial price level $7.5.

d. The firm should maintain its current price.

Reference no: EM13323919

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