The manager of a local monopoly estimates that the elasticity of demand for its product is constant
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The manager of a local monopoly estimates that the elasticity of demand for its product is constant and equal to -3. The firm’s marginal cost is constant at $35 per unit. a. Express the firm’s marginal revenue as a function of its price. Instruction: Enter your response rounded to two decimal places. MR = × P b. Determine the profit-maximizing price. Instruction: Use the rounded value calculated above and round your response to two decimal places. $
Related Book For
Managerial Economics and Business Strategy
ISBN: 978-0071267441
7th Edition
Authors: Michael R. baye
Posted Date: