Multiple Choice
The inverse elasticity pricing rule says that the optimal markup of price over marginal cost expressed as a percentage of price:
A) is equal to ½ the inverse of the price elasticity of demand.
B) is equal to - ½.
C) is equal to the negative of the inverse of the price elasticity of demand.
D) is equal to the inverse of the price elasticity of demand.
Correct Answer:
Verified
Correct Answer:
Verified
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