Is the firm charging the optimal price for the product

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Suppose a firm has a constant marginal cost of 10$. The current price of the product is 25$, and at that price it is estimates that the price elasticity of demand is -3.0

a) Is the firm charging the optimal price for the product? Demonstrate how you know.

b) Should the price be changed? if so, How?

Reference no: EM13326885

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