You are managing a firm with market power, and you think the price elasticity of demand for your product is between 1.3 and 1.5. You estimate that your marginal cost is between $50 and $75.The price that you should set would range between $ and $(Round your answers to two decimal places.)If you refine your estimate of the marginal cost to $80, the price you should set would now range between $and S. (Round your answers to two decimal places.)

To determine the price range you should set for your product, you can use the formula for pricing…

Answered: You are managing a firm with market…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 37P

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