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ACE Co has used market research to determine that if a price of $400 is charged for product Z, demand will be 12,000 units. It has also been established that demand will rise or fall by 10 units for every $1 fall/rise in the selling price. The marginal cost of product Z is $80.
Required If marginal revenue = a -2bQ when the selling price (P) = a - bQ, calculate the profit-maximising selling price for product Z. $________ |