Suppose a producer can manufacture her smartphones at a constant marginal cost of $300. She practices a rule-of-thumb for pricing with an “incremental margin percentage” of 70%. Find the price she should charge for her smartphones.

Suppose a producer can manufacture her smartphones at a constant marginal cost of $300. She practices a rule-of-thumb for pricing with an “incremental margin percentage” of 70%. Find the price she should charge for her smartphones.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose a producer can manufacture her smartphones at a constant marginal cost of $300. She practices a rule-of-thumb for pricing with an “incremental margin percentage” of 70%.

1. Find the price she should charge for her smartphones.

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