Nationalu ECO607 Eco for Managerial Decisions

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Question

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Discuss both topics

Post your own discussions and contribute to at least one of your classmate’s discussions by the end of Saturday. Quote references to substantiate your discussions.

1.            Price elasticity of demand is an important tool for managers in in a selling environment in deciding what to put on sale. Explain how a profit-maximizing manager should decide what goods to put on sale based on the relationship between total revenue and price elasticity of demand. Provide appropriate examples as needed.

2.            With appropriate examples explain how marginal cost is related only to total variable cost.

 

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