What are the drawbacks of method

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1. Why optimal pricing formula is only applicable for parts of the demand curve at which Ep of Demand where > 1?

2. Consider a monopoly with the following demand function P(Q) = 170 - 20Q. Assume that this firm is currently operating at a price range between 120 to 130 dollars. Can this firm increase its total revenue by decreasing its price ? Explain

3. Explain full cost pricing. What are the drawbacks of this method?

Reference no: EM132177171

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