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Angelica pickles manager a Quick copy franchise White Plains, New York. Pickles projects reducing copy 5¢ to 4¢ each, Quick Copy's $600-per-week profit contribution will increase by one-third.

A. If average variable costs are 2¢ per copy, find out Quick Copy's projected increase in volume.

B. What is Pickles' estimate of the arc price elasticity of demand for copies?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M937801

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