Presume the marginal cost of production

Reference no: EM13684295

Presume the marginal cost of production for a company is $6 at its current production levels. Presume the price elasticity of demand is constant at -2 among prices of $10 to $1, if current prices are $10, is the company pricing at the correct optimal level? If not, must it increase or decrease prices and to what level?

Reference no: EM13684295

Questions Cloud

Demand and supply analysis and marginal analysis : Discuss why both demand and supply analysis and marginal analysis should be used in making rational business decisions. Please include specific examples in your discussion posts.

Previous circumstances or actions of the victim : Previous circumstances or actions of the victim?

Decide uniform amount the capacity must increase each year : Cougar Telemarketing is considering establishing a call center. The initial cost will be $2,750,000 with a $27,500 market value any time within a 13-year period. The fixed cost of the center will be $833,400 per year with an average variable cost of ..

Discuss the implications of this change in exchange rate : The CFO of a company with global operations has a forecast that indicates that the euro will depreciate in value against the dollar by 30 percent over the next year. The company has important operations in the Euro Zone, including a wholly owned subs..

Presume the marginal cost of production : Presume the marginal cost of production for a company is $6 at its current production levels. Presume the price elasticity of demand is constant at -2 among prices of $10 to $1, if current prices are $10, is the company pricing at the correct optimal..

What is maximum investment that will be allowed for dike : A state government is considering construction of a flood control dike having a life span of 12 years. History indicates that a flood occurs every four years, on average, and causes $500,000 in damages on each occasion. If the state uses a MARR of 12..

Gross domestic product problem : Economics 12th edition, Chapter 22 P. 485 asks which of the following transactions are included in gross domestic product, and by how much does each raise GDP? Smith pays a carpenter $50,000 to build a garage

Is it possible for many firms to sell exactly same product : Is it possible for many firms to sell exactly the same product, and still be in monopolistic competition? Be precise and describe in detail.

The offshore assembly provision : The offshore assembly provision in the U.S.

User Account

All Pages