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AB has used market research to determine that if a price of $250 is charged for...

AB has used market research to determine that if a price of $250 is charged for product G, demand will be 12000 units. It has also been established that demand will rise or fall by 5 units for every $1 fall/rise in the selling price. The marginal cost of product G is $80.

Required: If marginal revenue = a – 2bx when the selling price (P) = a – bx, calculate the profit-maximising selling price for product G

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