Solved: Is the firm charging the optimal price for the product, Microeconomics

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Is the firm charging the optimal price for the product

Question: Suppose a firm has a constant marginal cost of 10$. The current price of the product is 25$, and at that price it is estimates that the price elasticity of demand is -3.0

a) Is the firm charging the optimal price for the product? Demonstrate how you know.

b) Should the price be changed? if so, How?

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Microeconomics: Is the firm charging the optimal price for the product

Reference No:- TGS02089026

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