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A firm’s cost equation is given by TC = 200 + 10Q. The price elasticity of demand is -2. What is the optimal price to charge?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A firm’s cost equation is given by TC = 200 + 10Q. The price elasticity of demand is -2. What is the optimal price to charge?

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