Question: The manager of a local monopoly estimates that the elasticity of demand for its product is constant and equal to 4. The firms marginal cost

The manager of a local monopoly estimates that the elasticity of demand for its product is constant and equal to –4. The firm’s marginal cost is constant at $10 per unit.
a. Express the firm’s marginal revenue as a function of its price.
b. Determine the profit-maximizing price.

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