Managerial Economics 13th Edition by James McGuigan,Charles Moyer,Frederick Harris

تمرين 9

Unique Creations holds a monopoly position in the production and sale of mag-nometers. The cost function facing Unique is estimated to be
TC = $100,000 + 20Q
a. What is the marginal cost for Unique
b. If the price elasticity of demand for Unique is currently -1.5, what price should Unique charge
c. What is the marginal revenue at the price computed in Part (b)
d. If a competitor develops a substitute for the magnometer and the price elasticity increases to -3.0, what price should Unique charge