question archive A monopoly incurs a marginal cost of $3 for each unit produced
A monopoly incurs a marginal cost of $3 for each unit produced
Subject:MarketingPrice:2.88 Bought3
A monopoly incurs a marginal cost of $3 for each unit produced. If the price elasticity of demand equals -2.5, the monopoly maximizes profit by charging a price of:
A. $5.00
B. $3.00
C. $4.00
D. $5.50
