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A firm produces a product with a fully allocated average cost equal to $20. If the price elasticity of demand for the product is -5,?

 then the product price should be set at :

 a. $25. 

 b. $24. 

 c. $23. 

 d. $22. 

 

Logistics ERP Project Management Business Development Management
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Question added by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company
Date Posted: 2015/07/23
Upvote (2) Views (7) Followers (8) Answers (9) Report Question
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Nasir Hussain
by Nasir Hussain , Sales And Marketing Manager , Pakistan Pharmaceutical Products Pvt. Ltd.

 a. $25. .........................................................................................

Khaled Anwar
by Khaled Anwar , Senior Sales Engineer , "Automotive company''

The answer is : Option ( A ) 

Emad Mohammed said abdalla
by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company

  1. The correct answer was: a. $25.. 

khaled elkholy
by khaled elkholy , HR MANAGER , misk for import & export

agree with mr emad..........................................................................

Sashikanta Mohapatra
by Sashikanta Mohapatra , Manager - Business Development/Sales Process Deployment , Vodafone Spacetel Limited

It's the 1st option....Option A.

Ahmed Mohamed Ayesh Sarkhi
by Ahmed Mohamed Ayesh Sarkhi , Shared Services Supervisor , Saudi Musheera Co. Ltd.

My Answer Is Option " A " .....

 

Mohammed Asim Nehal
by Mohammed Asim Nehal , M Asim Nehal & Co , Chartered Accountants

When allocated average cost equal to $20 and elasticity of demand is negative it means we need to add it to Cost / substract from revenue.....so answer is $25

Yaqoub Alomar
by Yaqoub Alomar , Civil Engineer , Al-Zubeir municipality

I agree with the majority 

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