Unique Creations Has a Monopoly Position in Magnometers

question 5

Multiple Choice

Unique Creations has a monopoly position in magnometers.If the marginal cost for a magnometer is $50 and the price elasticity for magnometers is -4,what is the optimal monopoly price? Hint: P (1 +1/E) = MC.

• A) $37.50
• B) $41.25
• C) $66.67
• D) $75.00
• E) $82.50

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