Optimal Price Calculator Tool

Optimal Price Calculator

Optimal Price Calculator

Parameter Description Example Value
Marginal Cost The cost to produce one additional unit of a product. $15
Price Elasticity of Demand The responsiveness of the quantity demanded to a change in price. -2
Optimal Price The price at which profit is maximized. It is calculated using the formula: \(\text{Optimal Price} = \frac{\text{Marginal Cost}}{1 + \frac{1}{\text{Price Elasticity of Demand}}}\). $20

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