The price elasticity of demand for a textbook sold in the United States is estimated to be −2.0, whereas the price elasticity of demand for books sold overseas is −3.0. The U.S. market requires hardcover books with a marginal cost of $40; the overseas market is normally served with softcover texts on newsprint, having a marginal cost of only $15. Calculate the profit-maximizing price in each market.
MR = P(1 + 1/ED)