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b. Consider a monopolist with the following inverse demand function: P = 260 - Q. The monopolist's marginal cost of production equals $20 per unit
b. Consider a monopolist with the following inverse demand function: P = 260 - Q. The monopolist's marginal cost of production equals $20 per unit and is constant. Solve for the price elasticity of demand at the profit-maximizing price and quantity. Use the equation that relates marginal revenue with the market price and price elasticity of demand to verify that you have identified the profit-maximizing output and price
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