Question: Suppose the demand function is given by Q= aP^b , where b <0. Calculate the price elasticity of demand. Calculate MR as a function of

  1. Suppose the demand function is given by Q= aP^b , where b<0.

    1. Calculate the price elasticity of demand.

    2. Calculate MR as a function of P.

    3. Show that at the limit as the price elasticity goes to infinity, the firm is a

      price taker.

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