Determining the optimal price
Qustion:
Given the price elasticity of demand for your product is 0.85, your marginal cost is 50 when you produce 1000 units, use the Lerner Index to calculate your price mark-up. What is your optimal price if you produce 1000 units?
Now Priced at $20 (50% Discount)
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Use the Lerner Index to calculate your price mark-up. What is your optimal price if you produce 1000 units?
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