Express the firm’s marginal revenue as a function of its price.

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The manager of a local monopoly estimates that the elasticity


The manager of a local monopoly estimates that the elasticity of demand for its product is constant and equal to -3. The firm’s marginal cost is constant at $20 per unit.

a. Express the firm’s marginal revenue as a function of its price.

b. Determine the profit-maximizing price?

The manager of a local monopoly estimates that the elasticity