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If the price elasticity is -3 and RM 100 is the marginal cost of product X , what should be the optimal sale price?

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter12: More Realistic And Complex Pricing

Section: Chapter Questions

Problem 12.1IP

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If the price elasticity is -3 and RM 100 is the marginal cost of product X , what should be the optimal sale price? ( hint: apply the mark up rule ) (500-600) words

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