ECO 2 – Principles of Economics II UNIT 7 – Homework Assignment Question 1 The table below includes simplified data on the market demand for an antihistamine drug as well as data on the total costs incurred by the firm offering this drug to the public. Quantity Price Total Revenues Marginal Revenue Total Cost Fixed […]
Discuss the importance of considering elasticity in pricing decisions and the danger of relying solely on costs.
You are introduced to the shutdown price, using elasticity to determine the effects of price changes, and cost-based pricing. Discuss the importance of considering elasticity in pricing decisions and the danger of relying solely on costs.