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Profit maximization and price elasticity of demand

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Calculate the profit maximizing price if MC is $8.00 and price elasticity of a firm's product equals -2.

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Solution Summary

Solution describes the steps to estimate the profit maximizing price by using elasticity and marginal cost.

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  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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