11.19. The marginal cost of preparing a large latte in a specialty coffee house is $1. The...

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11.19. The marginal cost of preparing a large latte in a specialty coffee house is $1. The firm’s market research reveals that the elasticity of demand for its large lattes is constant, with a value of about "1.3. If the firm wants to maximize profit from the sale of large lattes, about what price should the firm charge?

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Microeconomics

ISBN: 9780470563588

4th Edition

Authors: David Besanko, Ronald Braeutigam

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