Solved: How do you know that cutting the price of roundup was a, Microeconomics

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How do you know that cutting the price of roundup was a

Postscript

Monsanto remains a high-risk company with strong upside potential. When the US patent expired, Roundup revenue dropped sharply, leaving Monsanto increasingly reliant on biotechnology. With exposure to Latin America compounding the fall in Roundup revenue, the share price fell 50% in mid-2002, leading to the December resignation of CEO Hendrik Verfaillie.

Questions

(a) How do you know that cutting the price of Roundup was a good idea for Monsanto?

(b) How might you estimate the elasticity of demand and the profit-maximizing price for 1995. Do you think Monsanto set the right price?

Attachment:- monsanto.pdf

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