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A pharmaceutical firm has a patent to produce certain biological drugs in high demand. The marginal cost of producing a month supply of the drug
A pharmaceutical firm has a patent to produce certain biological drugs in high demand. The marginal cost of producing a month supply of the drug is $10. The firm sells the drugs at $4000 per month supply. The elasticity of demand for the drug is estimated to be -1.0001. If the firm is interested in profit maximization, what would you advise it regarding the price it is currently charging for the drug
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