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H&M has been selling 15,000 jackets per month for 355 ETB. When they increased the price to 500 ETB, they sold only 12,000 Jackets. What is the demand elasticity? If the marginal cost is 250 per Jacket, what will be the desired markup price? Was raising the price profitable? What is a "returns to scale"? Explain the different types of returns to scale and their respective causes. Does it have relationship with economies of scale?

H&M has been selling 15,000 jackets per month for 355 ETB. When they increased the price to 500 ETB, they sold only 12,000 Jackets. What is the demand elasticity? If the marginal cost is 250 per Jacket, what will be the desired markup price? Was raising the price profitable? What is a "returns to scale"? Explain the different types of returns to scale and their respective causes. Does it have relationship with economies of scale?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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