Determine the profit maximizing price in each market

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The price elasticity of demand for a textbook sold in the United States is estimated to be -2.0, whereas the price elasticity of demand for books sold in overseas markets is -3.0. The U.S. market requires hardcover books with a marginal cost of $24.00 while the overseas market is normally served with soft-cover texts having a marginal cost of only $18.00. Calculate the profit maximizing price in each market. How might these prices become equal?

Reference no: EM13239158

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