You are managing a firm with market power, and you think the price elasticity of demand for your product is between 1.3 and 1.5. You estimate that your marginal cost is between $55 and $70. The price that you should set would range between $ and $[ (Round your answers to two decimal places.) If you refine your estimate of the marginal cost to $80, the price you should set would now range between S and S. (Round your answers to two decimal places.)

You are managing a firm with market power, and you think the price elasticity of demand for your product is between 1.3 and 1.5. You estimate that your marginal cost is between $55 and $70. The price that you should set would range between $ and $[ (Round your answers to two decimal places.) If you refine your estimate of the marginal cost to $80, the price you should set would now range between S and S. (Round your answers to two decimal places.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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