For the Mickey Mice Company,the price elasticity of demand is -3,average cost is $15,and marginal cost is $30.Mickey's profit-maximizing price is:

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Quizplus · Accepted Answer

The profit-maximizing price can be found using the formula: P = MC / (1 + 1/Ed), where Ed is the price elasticity of demand. Substituting the given values: P = 30 / (1 + 1/-3) = 30 / (1 - 1/3) = 30 / (2/3) = 45.

For the Mickey Mice Company,the Price Elasticity of Demand Is