The manager of a retail computer equipment outlet uses the companys standard 100 percent mark-up and charges
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The manager of a retail computer equipment outlet uses the company’s standard 100 percent mark-up and charges $200 for its most popular model of motherboards. The manager recently read in an economic journal that the price elasticity of demand for motherboards is –3.5.
Is this manager optimally pricing this product? If not, what price should the manager charge to maximize the outlet’s profit on the sale of motherboards?
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Related Book For
Managerial Economics: Tools For Analyzing Business Strategy
ISBN: 307174
1st Edition
Authors: Thomas J Webster
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