Multiple Choice
Which of the following formulas calculates the profit-maximising price?
A) (Total variable cost + total fixed cost) / price elasticity of demand
B) Variable cost × [elasticity / (elasticity + 1) ]
C) Total variable cost + total fixed cost
D) Total cost × [elasticity / (elasticity + 1) ]
Correct Answer:
Verified
Correct Answer:
Verified
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