Market Power and Monopoly - End of Chapter Problem Suppose that econometricians at Hallmark Cards determine that the price elasticity of demand for greeting cards is - 2. a. If Hallmark's marginal cost of producing cards is constant and equal to $1.00, based on the Lerner index, what price Profit-maximizing price = $ . N should Hallmark charge to maximize its profit? b. Hallmark hires you to estimate the price elasticity of demand faced by its archrival, American Greetings. Hallmark -2.0 estimates that American's marginal cost of producing a EV = greeting card is $1.22. You note that American's cards sell for Incorrect an average of $3.25. Assuming that American Greetings is maximizing profit, calculate their price elasticity of demand. Round your answer to one decimal place and DO NOT take its absolute value. 55 OF cl)'s ENG 04:29 IN 17/11/2021