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Implied elasticity of demand for the iphone xs max

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Reference no: EM132158341

The Wall Street Journal recently published a cost analysis of the new iPhone XS Max. In round figures, the product price is $1100 per phone, and the marginal cost per phone is $400. What is the current margin (Lerner Index, (P - MC)/P) for iPhone XS Max? If Apple uses optimal pricing for this phone, what is the implied elasticity of demand for the iPhone XS Max?

Reference no: EM132158341

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