3 ms·
Say you have an idea of what the demand curve looks like. For the sake of argument, let it be (100-p), so 100 people would want it for free, and none would want
by repsilat 11y ago
Say you have an idea of what the demand curve looks like. For the sake of argument, let it be (100-p), so 100 people would want it for free, and none would want it at $100.
If your marginal cost is $50, to maximise profit you'd set the price equal to $75 and make $625 net.
If your marginal cost is $40, you'd set the price at $70 to maximise profit and make $900 net.