Unique Creations has a monopoly position in magnometers. If the marginal cost for a magnometer is $50
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Question:
Unique Creations has a monopoly position in magnometers. If the marginal cost for a magnometer is $50 and the price elasticity for magnometers is -4, what is the optimal monopoly price? Hint: P (1 +1/E) = MC.
a). $37.50
b). $41.25
c). $66.67
d). $75.00
e). $82.50
Related Book For
Managerial economics applications strategy and tactics
ISBN: 978-1439079232
12th Edition
Authors: James r. mcguigan, R. Charles Moyer, frederick h. deb harris
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