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5. Suppose that a firm faces a demand curve that has a constant elasticity of -2. This demand curve is given by q = 256/p2
5. Suppose that a firm faces a demand curve that has a constant elasticity of -2. This demand curve is given by q = 256/p2 Suppose also that the firm has a marginal cost curve of the form: MC = 0.001q (1x3 =3 points) 5.1. Graph these demand and marginal cost curves. 5.2. Calculate the marginal revenue curve associated with the demand curve; graph this curve. 5.3. At what output level does marginal revenue equal marginal cost
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