The fully allocated cost of a product is $12. If the price elasticity of demand for the product is -4, then the firm should charge a price of
A) $16.00.
B) $15.00.
C) $12.50.
D) None of the above is correct.

Question

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The Answer of The fully allocated cost of a product is $12. If the price elasticity of demand for the product is -4, then the firm should charge a price of
A) $16.00.
B) $15.00.
C) $12.50.
D) None of the above is correct.

The Fully Allocated Cost of a Product Is $12