A monopolist firm faces a demand with constant elasticity of negative 2.6-2.6. It has a constant marginal cost of $2020 per unit and sets a price to maximize profit. If marginal cost should increase by 1515 percent, would the price charged also rise by 1515 percent?
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Home » Business » A monopolist firm faces a demand with constant elasticity of negative 2.6-2.6. It has a constant marginal cost of $2020 per unit and sets a price to maximize profit.