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Economics

Profit maximization

A firm has capacity limitations and charges $30 for their service during daily peak times. If the market demand elasticity drops from -3 during peak times to -5 at off peak times, how much should the firm charge to earn the maximum profit during off peak times?
A. $20
B. $21
C. $24
D. Not enough information to determine

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9206114

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