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- 2013-9-27
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Can you please explain one thing here: why is total revenues maximized at unitary elasticity?
Assume price increase by 20% and quantity reduces accordingly
1. When elasticity is high Change in Revenue = 1.2x.7 = .84
2. When elasticity is unit Change in Revenue = 1.2x.8 = .96
3. When elasticity is low Change in Revenue = 1.2x.9 = 1.08–revenue is maximized here not at unit elasticity?????? |
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发表于 2013-4-14 18:56
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