A firm’s cost equation is given by TC = 200 + 10Q.  The price elasticity of demand is -2.  What is the optimal price to charge?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter11: Price And Output Determination: Monopoly And Dominant Firms
Section: Chapter Questions
Problem 3E
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A firm’s cost equation is given by TC = 200 + 10Q.  The price elasticity of demand is -2.  What is the optimal price to charge?

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