Solution-Why can this markup be viewed as a measure

Why can this markup be viewed as a measure

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1. We write the percentage markup of prices over marginal cost as (P- MC)/P. For a profit maximizing monopolist, how does this markup depend on the elasticity of demand? Why can this markup be viewed as a measure of monopoly power?

Reference no: EM13943912

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Why can this markup be viewed as a measure

Reference no: EM13943912

Reference no: EM13943912

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