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Assume that demand curves are all linear. Calculate the own-price point elasticitiesof demand implied by the data at prices of $299 and $399 for both
Assume that demand curves are all linear. Calculate the own-price point elasticitiesof demand implied by the data at prices of $299 and $399 for both Sony and Microsoft. Are your answers consistent with your understanding of short-run profit maximization for firms with market power?
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