Optimal price last week wallys burgers inc reduced the, Other Subject

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Optimal price last week wallys burgers inc reduced the

Optimal Price. Last week, Wally's Burgers, Inc. reduced the average price on the 1/2-pound Papa burger by 1%. In response, sales jumped by 2%.

A. Calculate the point price elasticity of demand for Papa burgers.

B. Calculate the optimal price for Papa burgers if marginal cost is $1 per unit.

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