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The manager of a local monopoly estimates that the elasticity of demand for its product is constant and equal to -2. The firm's marginal cost is constant at $10 per unit.
a. Express the firm's marginal revenue as a function of its price.
b. Determine the profit-maximizing price.
Estimate the linear demand equation
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The WSJ recently reported that Juniper Networks plans to offer its more than 1000 employees opportunity to reprice their stock options.
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