(a) Uly paper clip dispensers are produced with a fixed cost of $10,000 and a constant...
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(a) Uly paper clip dispensers are produced with a fixed cost of $10,000 and a constant marginal cost of $6. If the demand for these dispensers has a price elasticity of -1.5, what is the profit-maximizing price?
(b) (10 points) At this profit-maximizing price, what is the marginal revenue?
Homework Answers
A.P
should be $17.64 at the profit maximizing price.
B.At the profit maximizing price MR=MC.
MR=$6
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