What is the optimum price at which total revenue can be maximized for Maa mustard oil if the competitors' prices do not increase in October 2015 (scenario l)? If competitors increase their prices by around 6 percent, as suggested in the case (scenario 2), what would be the optimum price? Does the company benefit if competitors increase their prices? Perform all calculations under the assumption of no increase in promotional expenditure in the next month and a 1-per-cent increase in the per capita income of consumers.
- Plot a demand curve and a total revenue curve using the estimated values of quantity demanded from question 4. Analyze the findings of question 4 by using the concept of the total revenue test and the plotted graphs.