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Optimal Pricing

Forums › ACCA Forums › ACCA PM Performance Management Forums › Optimal Pricing

  • This topic has 0 replies, 1 voice, and was last updated 14 years ago by foxman.
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  • March 3, 2011 at 9:07 pm #47547
    foxman
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    • Topics: 9
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    I have just watched the video lectures for optimal pricing. The first one uses the table format where the variable cost reduces as demand increases. In the second lecture where the optimal price is calculated using the equations the marginal cost remains fixed. If Example 2 were to be solved using the same principle that marginal cost equals marginal revenue, what is the marginal revenue when it reduces with increased demand/production?

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