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Price Elasticity:

Suppose that a firm maximizes its total profits and has a marginal cost (MC) of production of $8 and the price elasticity of demand for the product it sells is (-)3. Find the price at which the firm sells the product.

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Suppose that a firm maximizes its total profits and has a marginal cost (MC) of production of $8 and the ...

Solution Summary

This solution is comprised of a detailed explanation to find the price at which the firm sells the product.

$2.19