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Suppose a firm sells two goods, Good A and Good B. Use the following information to answer questions that follow: Profit maximizing price of Good
Suppose a firm sells two goods, Good A and Good B. Use the following information to answer questions that follow:
Profit maximizing price of Good A = $6000
MC at profit-maximizing level of output of Good A = $1200
MC at profit-maximizing level of output of Good B = $400
Total revenue of Good A = $80000
Total revenue of Good B = $68000
Rothschild index of Good B = 0.6
Price elasticity of the market demand for Good B = -1.2
2.1. Calculate the price elasticity of demand (Ed) for Good A.
Ed of Good A =__________________
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