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Not necessarily in between, you'd have to draw a demand curve at various different prices to determine the optimum // guy who is studying economics
by jmonegro 15y ago
Not necessarily in between, you'd have to draw a demand curve at various different prices to determine the optimum // guy who is studying economics
- nl 15y agoHe said "in between", not "exactly half way". The best way to draw a demand curve would be to get some data at the half-way point. // random person on the internet
- aptwebapps 15y agoThe optimum point might lie outside. The curve might even dip in between the two price points. Edit: The operative word here is 'might'.
- carbocation 15y agoTrue, but wouldn't you agree that nl's suggestion is the maximum likelihood guess?
- nl 15y agoYes, it might. But presumably the authors wants to maximize revenue while conducting experiments. Pricing at the midway point would seem to be the lowest risk way of getting additional data.