View the step-by-step solution to:

Why should a profit maximizing manager who is setting prices care about the elasticity demand curve for a product?

Why should a profit maximizing manager who is setting prices care about the elasticity demand curve for a product? Elasticity only accounts for how price changes revenue. Profit maximization requires a manager to analyze additional revenues as well as additional costs from a price change.

I propose that solely focusing on an elasticity analysis has little to do with profit maximization.

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question