Question
Considering the markup rule, (P-MC)/P=1/|e|, which price elasticity of demand below will have a larger markup over marginal cost? Select one: a. -7 b. -1.5
Considering the markup rule, (P-MC)/P=1/|e|, which price elasticity of demand below will
have a larger markup over marginal cost?
Select one:
a. -7
b. -1.5
c. -6
d. -2
I believe the correct answer is B but I am looking to better understand why that is.
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Introduction to Behavioral Economics
Authors: David R. Just
1st edition
0470596228, 978-0470596227
