1. our material is about pricing to get the maximum profit. There is a Marginal Revenue formula using Demand Elasticity. Can you explain why the elasticity of demand used in the MR formula? What does the elasticity of demand have to do with MR?

2. Regarding the pricing strategy, namely Block Pricing, Do bundling products such as shoes and socks include Block Pricing? Explain Your Answer

3. Suppose that 6 companies compete in the Cournot oligopoly market by producing goods that are exactly the same. The market demand elasticity for this product, is -3/4, and each company has a marginal cost of production of $ 15. - What is the price (P) that can maximize profits at the market equilibrium? And what is the meaning of -3/4 elasticity of demand? Explain Your Answer

Answer rating: 100% (QA)

1 Marginal Revenue and Price Elasticity of Demand The concept of marginal revenue is closely related to price elasticity of demand The word margin always refers to anything extra Therefore marginal re... View the full answer