A company currently sells 60000 units a month at 10 per


A company currently sells 60,000 units a month at $10 per unit. The marginal cost per unit is $6. The company is considering raising the price by 10% to $11. If the price elasticity of demand is _______________ in that price range, then profit would increase if the company decided to raise the price by 10%.
a. equal to - 3
b. greater than + 1
c. less than - 2.5
d. greater than or equal to - 2

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: A company currently sells 60000 units a month at 10 per
Reference No:- TGS01392619

Expected delivery within 24 Hours