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QUESTION
Calculate the profit maximizing price if MC = $8.00 and price elasticity for a firm's product equals -2.
Calculate the profit maximizing price if MC = $8.00 and price elasticity for a firm's product equals -2.
Calculate the profit maximizing price if MC = $8.00 and price elasticity for a firm'sproduct equals -2.To maximise profits MR= MCAlso we know that MR= P( 1-1/e)So MC= P(1-1/e)8 =P(1-1/2)P= 16