Question $112\mathrm{.}5$ pts

Consider the information in Question No$.1$ and your answers to Questions No$.6$ to $10.$ Let's define a "Mark$-$up Index $($MI$)"$ as the difference between profit$-$maximizing price $($P$*)$ and marginal cost $($MC$),$ divided by marginal cost:

MI$=($P$*-$MC$)/$MC

Compute the Mark$-$up Index for ManuProd International. $($Note: Enter your answer below using two decimal points$).$

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Flag question: Question $12$

Question $125$ pts

In this question, we are going to examine how greater demand elasticity affects the Mark$-$up Index $($MI$=($P$*-$MC$)/$MC$).$ You are given two alternative demand functions for ManuProd International:

P$=250-6\mathrm{.}57*$Q

P$=250-1\mathrm{.}65*$Q

One of them is more elastic than the demand function in Question No$.6.$ Compute the Mark$-$up Index under the more elastic demand. $($Note: Enter your answer below using two decimal points$).$