Optimal Price

question 13

Essay

Optimal Price. Nice Bicycles, Inc., recently offered rebates of $10 off the regular $400 price on Triath model bikes. Sales responded, rising 5% over the previous month's level.
A. Calculate the point price elasticity of demand for Triath bicycles.
B. If marginal cost per unit is $200, was the original $400 price optimal?

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Definitions:

Ethical Corporate Culture

An organizational environment that prioritizes ethical behavior, fairness, and responsibility towards stakeholders in all business dealings.

Ethics Program

A structured system within an organization aimed at ensuring compliance with ethical standards and legal requirements.

Proper Oversight

Adequate supervision or review to affirm that actions and decisions comply with standards, regulations, and expectations.

Corporate Culture

The beliefs, behaviors, values, and symbols accepted by members of an organization, that influence their actions and distinguish the organization from others.