Question
The manager of a local monopoly estimates that the elasticity of demand for its product is constant and equal to -3. The f irm's marginal
The manager of a local monopoly estimates that the elasticity of demand for its product is constant and equal to -3. The f irm's marginal cost is constant at $20 per unit. What price will maximize its total profit? a. $30 b. $40 C. $80 d. $100
Why is the answer A, explain how to solve?
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Economics The Basics
Authors: Michael Mandel
2nd Edition
0073523186, 9780073523187
