Natural Inelasticity: Providing Value instead of Value Engineering

"Sell to the classes, eat with the masses. Sell to the masses, eat with the classes." - Henry Ford One recent point in my class on Economics and the Firm looked at how to maximize revenue in a business from the standpoint of an economist. The example has been, "If you increase the price of your product by 10% and you lose less than 10%, you likely aren't charging enough and haven't maximized your marginal revenue." Once you  lose the same … [Read more...]