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... show more 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?
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