Question
Afirmstartedadvertisingitsproduct andthischangedtheproduct'selasticityfrom-2to -1.5. If,prior to advertising, the firm was maximizing profit by charging $10, the firm should raisepricefrom$10to $15 reducepricefrom$10to$6.67 raisepricefrom$10to $13.33 4) reducepricefrom$10to$7.50. I'm
Afirmstartedadvertisingitsproduct andthischangedtheproduct'selasticityfrom-2to -1.5. If,prior to advertising, the firm was maximizing profit by charging $10, the firm should
- raisepricefrom$10to $15
- reducepricefrom$10to$6.67
- raisepricefrom$10to $13.33
4) reducepricefrom$10to$7.50. I'm wresting with this one because I don't understand how the formula is working out to the price.
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Business Ethics Case Studies And Selected Readings
Authors: Marianne M. Jennings
9th Edition
0357453867, 9780357453865
