What prices will maximize profits

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You sell consumer products in the Americas. The price sensitivity of South American consumers seems greater than for those in North America. An economic consulting firm has estimated the own-price elasticity for your most profitable product is -1.25 in North America and -1.50 in South America. Your marginal cost is constant at $75 across most of your production volume capability. What prices will maximize profits? Show the computation.

Reference no: EM131071657

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