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Why do monopolistic firms price their product within a price range where the demand is relatively elastic?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter10: Monopolistic Competition And Oligopoly

Section: Chapter Questions

Problem 7RQ: How does a monopolistic competitor choose its profit-maximizing quantity of output and price?

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