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The marginal cost of producing the SplendorPillow is constant at $5. The price elasticity of demand for the SplendorPillow is -3 and the elasticity of

The marginal cost of producing the SplendorPillow is constant at $5.

The price elasticity of demand for the SplendorPillow is -3 and the elasticity of demand with respect to spending on advertising is 0.3.

What is Bob's profit-maximizing price in dollars?

What percentage of his revenue should Bob spend on advertising?

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