Suppose a firm makes its product in one factory, but it sells it in three different and separate markets. In market A, the demand elasticity is -2.6. In market B, demand elasticity is -2.8, and in market C, demand elasticity is -4.2. In which market will a profit maximizing firm set the highest price?
a. Market A
b. Market B
c. Market C
Get Answers For Free
Most questions answered within 1 hours.