If the Marginal Cost of Making a Photocopy Is 2

question 88

Multiple Choice

If the marginal cost of making a photocopy is 2 cents and the elasticity of demand is 3, the profit-maximizing price is

• A)5 cents.
• B)4 cents.
• C)3.33 cents.
• D)3 cents.
• E)6 cents.