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Presume the marginal cost of production

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Presume the marginal cost of production for a company is $6 at its current production levels. Presume the price elasticity of demand is constant at -2 among prices of $10 to $1, if current prices are $10, is the company pricing at the correct optimal level? If not, must it increase or decrease prices and to what level?

Reference no: EM13684295

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