# C) What is the price elasticity at the profit maximizing price?

Gloria (a.k.a. Glorious), a well-known fast food operator in the University area seeks your expert advice. She has given you the following information: when she charged a price of $210 for a box lunch there were about 1,500 customers per month and a price of $220 only 1,000 customers. Glorious wants to know the...
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Gloria (a.k.a. Glorious), a well-known fast food operator in the University area seeks your expert advice. She has given you the following information: when she charged a price of $210 for a box lunch there were about 1,500 customers per month and a price of $220 only 1,000 customers. Glorious wants to know the following (based on operating cost of $120 per box lunch):

a) What price would maximize profit?

b) What price would maximize revenue?

c) What is the price elasticity at the profit maximizing price?

a) What price would maximize profit?

b) What price would maximize revenue?

c) What is the price elasticity at the profit maximizing price?

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