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A monopolist has set her level of output to maximize profit. The firm's marginal revenue is $20, and the price elasticity of demand is -1.2.
- A monopolist has set her level of output to maximize profit. The firm's marginal revenue is $20, and the price elasticity of demand is -1.2. The firm's profit maximizing price is approximately:
- $20
- $40
- $200
- This problem cannot be answered without knowing the marginal cost.
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Introduction to Econometrics
Authors: James H. Stock, Mark W. Watson
3rd edition
133595420, 978-0138009007, 138009007, 978-0133486872, 133486877, 978-0133595420
