Multiple Choice
A book publisher faces two different markets with different price elasticities of demand for its books.In market A the price elasticity of demand is 6 and in market B the elasticity is 1.5.If the marginal cost of producing a book is $10,how should the firm price its books in the two markets?
A) market A = $12 and market B = $30
B) market A = $60 and market B = $15
C) market A = $15 and market B = $60
D) market A = $30 and market B = $12
Correct Answer:
Verified
Correct Answer:
Verified
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