13. You just got a patent for the first commercial self-driving car. The following table showsthe elasticity of the demand and the marginal cost of production of your cars in severalproduction centers across the globe. Assuming that this are constant, can you approximatewhat would be the optimal price for your cars?City Marginal Cost ElasticityPriceWolfburg, GermanyBarcelona, SpainTokyo, JapanUlsan, South KoreaEast London, South AfricaMexico City, Mexico$20, 000$18, 000$22, 000$16, 000$10, 000$12, 000-1.5 $60, 000.00$24, 000.00$33, 000.00$32, 000.00$11, 428.60$14, 400.00-4.0-3.0-2.0-8.0-6.0

Elasticity of demand for a good is an indicator of the sensitivity of the same towards price.…

You just got a patent for the first commercial self-driving car. The following table show the elasticity of the demand and the marginal cost of production of your cars in severa production centers across the globe. Assuming that this are constant, can you approximat what would be the optimal price for your cars? City Marginal Cost Elasticity Price Wolfburg, Germany Barcelona, Spain Tokyo, Japan Ulsan, South Korea East London, South Africa Mexico City, Mexico $20, 000 $18, 000 $22, 000 $16, 000 $10, 000 $12, 000 $60, 000.00 $24, 000.00 $33, 000.00 $32,000.00 $11, 428.60 $14, 400.00 -1.5 -4.0 -3.0 -2.0 -8.0 -6.0

You just got a patent for the first commercial self-driving car. The following table show the elasticity of the demand and the marginal cost of production of your cars in severa production centers across the globe. Assuming that this are constant, can you approximat what would be the optimal price for your cars? City Marginal Cost Elasticity Price Wolfburg, Germany Barcelona, Spain Tokyo, Japan Ulsan, South Korea East London, South Africa Mexico City, Mexico $20, 000 $18, 000 $22, 000 $16, 000 $10, 000 $12, 000 $60, 000.00 $24, 000.00 $33, 000.00 $32,000.00 $11, 428.60 $14, 400.00 -1.5 -4.0 -3.0 -2.0 -8.0 -6.0

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter10: Monopolistic Competition And Oligopoly

Section: Chapter Questions

Problem 16CTQ: Would you rather have efficiency or variety? That is, one opportunity cost of the variety of...

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