Which of the Following Formulas Calculates the Profit-Maximizing Price

question 66

Multiple Choice

Which of the following formulas calculates the profit-maximizing price?

• A) Total variable cost + total fixed cost
• B) (Total variable cost + total fixed cost) / price elasticity of demand
• C) Variable cost × [elasticity / (elasticity + 1)]
• D) Total cost × [elasticity / (elasticity + 1)]

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