Assume that a firm faces two markets where the demand elasticity in Market A is -5 and in Market B is -3. In addition, the marginal cost (m) is the same in both markets and is equal to $100. Determine the profit-maximizing prices. The price in Market A is $ (Round your response to two decimal places.)

Assume that a firm faces two markets where the demand elasticity in Market A is -5 and in Market B is -3. In addition, the marginal cost (m) is the same in both markets and is equal to $100. Determine the profit-maximizing prices. The price in Market A is $ (Round your response to two decimal places.)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter14: Pricing Techniques And Analysis

Section: Chapter Questions

Problem 1E

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