Optimal Price Calculator

Profit-maximizing price from elasticity.

Optimal price ($) 40

Step-by-step with your numbers:

1. Values used:

2. Marginal cost = 20 $

3. Price elasticity (absolute) = 2

4. Optimal price = Marginal cost x Price elasticity (absolute) = 20 x 2 = 40$

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Optimal price = MC × (|PED|÷(|PED|−1)).

FAQ

Markup?

Higher elasticity = lower markup.