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Economics

The manager of a local monopoly estimates that the elasticity of demand for its product is constant and equal to -2. The firm’s marginal cost is constant at $15 per unit.

a. Express the firm’s marginal revenue as a function of its price.

Instruction: Round your response to 2 decimal places.

MR =____ x P

b. Determine the profit-maximizing price.

Instruction: Use the rounded value calculated above and round your response to 2 decimal places.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91721076

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