(a) Uly paper clip dispensers are produced with a fixed cost of $10,000 and a constant marginal...
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(a) Uly paper clip dispensers are produced with a fixed cost of $10,000 and a constant marginal cost of $6. If the demand for these dispensers has a price elasticity of -1.5, what is the profit-maximizing price?
(b) (10 points) At this profit-maximizing price, what is the marginal revenue?
Related Book For
Macroeconomics Principles Applications And Tools
ISBN: 9780134089034
7th Edition
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
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