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sir in prob its asked that calculate price which provide max contribution that firm can earn ??
i am calculating it as profit can be max where MR=MC but i am just considering prob as to whether in equation we should take fixed cost per unit as cont = fixed cost +profit.
plz reply fast if possible i have too much things to wind up in less time
regards
sir i have already asked u same ques in P1 forum
MC stands for marginal cost which is usually taken to be equivalent to variable cost in the exam.
If fixed costs don’t change just apply MC = MR as normal.
If you need to find the optimum price in a scenario with fixed costs that change then you’ll need the tabular method to find the optimum price
Kind Regards
Cath
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