If a firm faces price-inelastic demand for its products, and can therefore raise its price and increase its total revenue, should it generally do so?  Why or why not?  When is it OK? When isn't it OK?  Explain your answer.  Does it make a difference if it is a pharmaceutical company?

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If a firm faces priceinelastic demand for its products meaning that the quantity demanded is not highly responsive to changes in price it might consid... View the full answer