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Demand function Q=P^-3
Marginal cost of production MC(Q)=12.
1. Calculate the elasticity of demand as a function of Q.
2. Does firm's profit maximization problem satisfy the global SOC?
3. Using your answer 1,2 question, what is firm's profit maximizing markup?
4. Based on your answer to 3, what is the firm's profit maximizing price?
5. Based on your answer to 4, what is the firm's profit maximizing quantity?
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