Finance

Optimal Price Calculator

Profit-maximizing price from elasticity.

Parameters Live Compute
Calculated Output
Optimal price ($) 40
Step-by-Step Breakdown
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)).

Frequently Asked Questions

Markup?

Higher elasticity = lower markup.

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