Anonymous
Anonymous asked in Education & ReferenceHomework Help · 1 decade ago

microeconomics problem?

can someone please help me with this micro problem?

The president of a toy company asks you for advice about whether the company should cut the price of its best-selling doll this year based on the following information: last year the company cut the price of its best-selling doll by 10% and the total revenues from doll sales increased by 10%.

10 points!:D

thanks.

2 Answers

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  • Anonymous
    1 decade ago
    Favorite Answer

    if the increase form last year is more than 10%, then you should consider to do what you did last year..but if it's only 10%..it doesnt make any differece.

  • 1 decade ago

    Cutting the price at rate of 10 % makes no difference to company.

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