You just got a patent for the first commercial self-driving car. The following table show the elasticity of the demand and the marginal cost of production of your cars in severa production centers across the globe. Assuming that this are constant, can you approximat what would be the optimal price for your cars? City Marginal Cost Elasticity Price Wolfburg, Germany Barcelona, Spain Tokyo, Japan Ulsan, South Korea East London, South Africa Mexico City, Mexico $20, 000 $18, 000 $22, 000 $16, 000 $10, 000 $12, 000 $60, 000.00 $24, 000.00 $33, 000.00 $32,000.00 $11, 428.60 $14, 400.00 -1.5 -4.0 -3.0 -2.0 -8.0 -6.0
You just got a patent for the first commercial self-driving car. The following table show the elasticity of the demand and the marginal cost of production of your cars in severa production centers across the globe. Assuming that this are constant, can you approximat what would be the optimal price for your cars? City Marginal Cost Elasticity Price Wolfburg, Germany Barcelona, Spain Tokyo, Japan Ulsan, South Korea East London, South Africa Mexico City, Mexico $20, 000 $18, 000 $22, 000 $16, 000 $10, 000 $12, 000 $60, 000.00 $24, 000.00 $33, 000.00 $32,000.00 $11, 428.60 $14, 400.00 -1.5 -4.0 -3.0 -2.0 -8.0 -6.0
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter10: Monopolistic Competition And Oligopoly
Section: Chapter Questions
Problem 16CTQ: Would you rather have efficiency or variety? That is, one opportunity cost of the variety of...
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