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Officeworks is introducing a new line of phone charger that has a variable cost of $5 per unit, and demand is known to be linear.
Officeworks is introducing a new line of phone charger that has a variable cost of $5 per unit, and demand is known to be linear. If the charger is priced at $45 it is expected that none will be sold. For every dollar decrease in price, the weekly demand is expected to increase by two additional units. What is the optimal price for this charger
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Economics of Strategy
Authors: David Besanko, David Dranove, Mark Shanley, Scott Schaefer
6th edition
978-1118273630, 111827363X, 978-1118319185
