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Determine the profit-maximizing price

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Reference no: EM132587580

The manager of a local monopoly estimates that the elasticity of demand for its product is constant and equal to -2. The firm's marginal cost is constant at $30 per unit.

a. Express the firm's marginal revenue as a function of its price.

Instruction: Enter your response rounded to two decimal places.

MR = × P

b. Determine the profit-maximizing price.

Instruction: Use the rounded value calculated above and round your response to two decimal places.

Reference no: EM132587580

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