(Solution Download) The price elasticity of demand for a textbook sold in


The price elasticity of demand for a textbook sold in the United States is estimated to be ?2.0, whereas the price elasticity of demand for books sold overseas is ?3.0. The U.S. market requires hardcover books with a marginal cost of $40; the overseas market is normally served with softcover texts on newsprint, having a marginal cost of only $15. Calculate the profit-maximizing price in each market.
MR = P(1 + 1/ED)

 







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