There is no Optimal selling price!!

Cost Accounts 333 views 1 replies

Hi all,

 

I have never come across a skewed issue like deriving optimal selling price. Can you explain why the Quantity demanded and Price forecasted does not generate profits with different levels of inputs?

Problem in excel file

 

Txs


Attached File : 2750458 20201124230506 demand forecasting.xlsx downloaded: 107 times
Replies (1)

ok, thanks for all your help and replies. I have sorted out the problem today and found out 

Regression Cost function Y= a + b X forecasts total costs but they are not equal to MC=MR derived from demand curve equation MR=MC. 

Also, found out that, Constants a, b from regression output will not give accurate results when used to define MR=MC function.

txs

 

Can download the excel answer

 


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