Homework Answers
Ans) Profit maximising price, P = MC × [( elasticity)/(elasticity +1)]
$100 = $50 × [(e)/(e+1)]
2 = e/(e+1)
2e + 2 = e
2e - e = -2
e = -2
Option b.
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Question 36 (1 point) At the profit-maximizing quantity, the firm's marginal cost is $50 and it...
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