The demand curve Q = A/p, where A is a positive constant, has the property that the

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The demand curve Q = A/p, where A is a positive constant, has the property that the elasticity of demand is ε = -1. If a monopoly faces this demand curve, where would it set its price or quantity if it has a positive marginal cost? Explain. Is this situation plausible?

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Microeconomics

ISBN: 978-0134519531

8th edition

Authors: Jeffrey M. Perloff

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