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You work as an economic analyst for a monopolist firm that faces a demand with constant elasticity of -2.0. It has a constant marginalcost of
You work as an economic analyst for a monopolist firm that faces a demand with constant elasticity of -2.0. It has a constant marginalcost of $20 per unit and sets a price to maximize profits. Your task to determine the profit maximizing price given the information provided. Explain.
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