A firm produces a product with a fully allocated average cost equal to $20. If the price elasticity of demand for the product is -5,?

 a. $25. .........................................................................................

The answer is : Option ( A ) 

1. The correct answer was: a. $25.. 

agree with mr emad..........................................................................

It's the 1st option....Option A.

My Answer Is Option " A " .....

 

When allocated average cost equal to $20 and elasticity of demand is negative it means we need to add it to Cost / substract from revenue.....so answer is $25

My answer is option (A) $25

I agree with the majority 

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