Charging the most favorable price

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Reference no: EM138286

Q. Q1. Explain how do I calculate the midpoints and marginal costs of 1 thing in terms of the other and the other thing in terms of the 1 thing? On excel? And Explain how do i estimate the marginal cost at a point?

Q2. Suppose a firm has a constant marginal cost of $10. The current price of the product is $25, and at that price, it is estimated that the price elasticity of demand is -3.0.

a. For the product is charging the most favorable price? Express how you know.

b. Should the price be changed, if so, Explain how?

Reference no: EM138286

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