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    Elasticity & Marginal Costs

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    A local dentist read an article published by the American Dental Association estimating that the elasticity of demand for the representative dentist's services is -2.5. How much should the dentist mark up their price over marginal cost? Step me through the calculations please.

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    https://brainmass.com/economics/microeconomics/elasticity-marginal-costs-dentist-example-58243

    Solution Summary

    Elasticity & marginal costs are determined.

    $2.19