November 26, 2015

Homework Help: managerial economics

Posted by Marie on Monday, December 21, 2009 at 10:52pm.

Suppose a manufacturer estimates its marginal cost at $1.00 per pack, it's own price elasticity at -2, and sets its price at $2.The company's settlement obligations are expected to raise its average total cost per pack by pack by about $.60.

What effect will this have on its optimal price?

Can you direct me in a direction?

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