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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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