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What is the optimal price

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Suppose Jake, Jobu, and Jonathan own a craft brew startup, J3 Brew, selling homemade beer. Their unit cost is constant at MC=$2.70 per bottle. The last time they raised the price 1%, it resulted in a 1.90% change in quantity demanded. They are currently charging $5 for a beer.

Should they adjust their price from $5? What is the optimal price?

Reference no: EM132460756

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