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pricing

This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.

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July 30, 2017 at 8:10 am #399380
adarsh1997
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Hi John!
Could you explain what’s the logic behind why the MR and the MC decreases as the selling price is reduced?
July 30, 2017 at 8:41 am #399388
John Moffat
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There is no reason why MC should be affected – in equation questions in the exam it stays constant.
The MR might go up or down as the selling price is reduced – it depends on the price/demand relationship.
My lectures on this cover all that is needed.
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