1.i) Assuming you are the managing director of a firm that produces goods: A,B and C .The price elasticity of demand for A is 1.2, for B it is 1.oo and C is 0.75. It is known that he's firm is experiencing serious cash flow problems and you have to increase total revenue as soon as possible. If you were in a position to set the prices for these goods, what would be your pricing strategy for each product ii) price falls from N$ 16 to N$ 12 per bottle and demand rises from 200 to 300 per bottle.calculate the PED using midpoint formula
1.i) Assuming you are the managing director of a firm that produces goods: A,B and C .The
ii) price falls from N$ 16 to N$ 12 per bottle and demand rises from 200 to 300 per bottle.calculate the
| Output | prices | average (total)cost | Total cost | marginal cost | Total |
| 10 | 10 | -108 | |||
| 20 | 10 | 4 | -48 | ||
| 30 | 10 | 5 | 3 | ||
| 40 | 10 | 6.20 | 40 | ||
| 50 | 10 | 8 | 60 | ||
| 60 | 10 | 10 | 60 |
2. i) fill in the gaps
ii)in which market structure doess Johnson Electronics (Pty)Ltd operate?
iii)what level of output maximizes the firms profit
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