Is the firm charging the optimal price for thimajigs

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Suppose Thimajigs have a variable cost of $10 per unit and currently sell for $25. Price elasticity of demand for Thimajigs Et = -3.0
(A) Is the firm charging the optimal price for Thimajigs? Demonstrate how you know.
(B) Should the price be changed? If so, how?

Reference no: EM13202456

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