Pricing Part 1
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Tabular method is the first one which wthout mc and mr ? I dont know
U solved 2 ways I undertood both of them but I dont know whats their names.
Do they come usually in exams? And if in mcqs or Long type quest.
Pricing can appear in both the MCQ’s and in the long form questions.
The names do not matter – it will be clear from the question which approach is needed.
could u explain more how it will be clear from quest? U mean they will give us directly written colums with headings ?
You would either be given the information as a table, or alternatively told by how much demand will change for a change in selling price.
You will find examples of both types of question in your Revision Kit.
How do I download the video for use at my own pace?
Lectures can only be watched online.
It is the only way that we can keep this website free of charge.
Well done Mr John, but please help me clarify this, from the example, at price $16 – MR=$1,500 and MC=$1,380, the extra profit = $120 (i.e $1,500-$1,380) but at price $15 – MR=$1,400 and MC=$1,360, the extra profit=$40, from this how can $15 be the optimum price?
Because any extra profit makes the total profit higher, and we want the maximum total profit.
$40 is not the total profit, but is the extra profit to be made by dropping the price to $15.