Question
A monopoly incurs a marginal cost of $120 for each unit produced. If the price elasticity of demand equals -3.0, the monopoly maximizes profit by
A monopoly incurs a marginal cost of $120 for each unit produced. If the price elasticity of demand equals -3.0, the monopoly maximizes profit by charging a price of _____.
Group of answer choices
$160
$120
$180
$360
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Macroeconomics Principles and Applications
Authors: Robert E. Hall, Marc Lieberman
6th edition
1111822352, 1111822354, 9781133708742 , 978-1111822354
