Explore BrainMass
Share

Explore BrainMass

    profit maximizing price

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Suppose that a firm maximize its total profits and has a marginal cost (MC) of production of $8 and the price elasticity of demand for the product it sells is (-)3. Find the price at which the firm sells the product.

    © BrainMass Inc. brainmass.com October 10, 2019, 12:21 am ad1c9bdddf
    https://brainmass.com/economics/pricing-output-decisions/profit-maximizing-price-288668

    Solution Summary

    The profit maximizing price is determined.

    $2.19