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If the price elasticity of demand for bananas is -1.5 and the price elasticity of demand for grapefruit is -2.5, and the marginal cost of producing each of the items is $0.50 each, what is the profit-maximizing price for each?

Bananas: $1.50;                     Grapefruit: $0.83


Bananas: $0.75;                     Grapefruit: $1.25


Bananas: $0.34;                     Grapefruit: $0.20


Bananas: $0.75;                     Grapefruit: $1.25

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M9464894

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