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Question 36 (1 point) At the profit-maximizing quantity, the firms marginal cost is $50 and it charges a price of $100. What

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Answer #1

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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