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A monopoly producing a handwash cream at a marginal cost of Rs. 6 per unit faces a demand elasticity of 2.5. Which price should it

A monopoly producing a handwash cream at a marginal cost of Rs. 6 per unit faces a demand elasticity of 2.5. Which price should it charge to optimize its profits?

Max. score: 4; Neg. score: 0

  • Rs. 10 per unit
  • Rs. 6 per unit
  • Rs. 8 per unit
  • Rs. 12 per unit

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