(Figure: Market for Wine Gift Baskets I) Zinfandelic, which sells wine gift baskets, faces the demand curve and marginal cost curve depicted in the graph. Solve for the following:
a. marginal revenue equation
b. profit-maximizing quantity
c. profit-maximizing price
d. At the profit-maximizing quantity, what is the price elasticity of demand?

Question

(Figure: Market for Wine Gift Baskets I) Zinfandelic, which sells wine gift baskets, faces the demand curve and marginal cost curve depicted in the graph. Solve for the following:  
a. marginal revenue equation
b. profit-maximizing quantity
c. profit-maximizing price
d. At the profit-maximizing quantity, what is the price elasticity of demand?

Quizplus · Accepted Answer

The Answer of (Figure: Market for Wine Gift Baskets I) Zinfandelic, which sells wine gift baskets, faces the demand curve and marginal cost curve depicted in the graph. Solve for the following:  
a. marginal revenue equation
b. profit-maximizing quantity
c. profit-maximizing price
d. At the profit-maximizing quantity, what is the price elasticity of demand?

(Figure: Market for Wine Gift Baskets I) Zinfandelic, Which Sells