Calculate the profit maximizing price in each market

Reference no: EM13238955

The price of elasticity of demand for a textbook sold in the US is estimated to be -2.0, whereas the price of elasticity of demand for books sold in overseas markets is -3.0. The US market requires hardcover books with a marginal costs of $24.00 while the overseas market is normally served with soft-cover texts having a marginal cost of only $18.00. Calculate the profit maximizing price in each market. How might these prices become equal?

Reference no: EM13238955

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