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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 -3.0.
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 -3.0. Which of the following prices or price ranges
describe the firm's profit maximizing price:
a. $0-9.
b. $10-19.
c. $20.
d. $21+.
e. This problem cannot be answered without knowing the marginal cost.
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