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, is it estimated 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: EM13802488

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