ch10_p3 - sell all eight boats for $1,500 The elasticity of...

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10_3. Homer's boat manufacturing has a monopoly on boat sales in the region. Homer's marginal cost of the 8 th boat produced is $1,200. He produces only eight boats and can
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Unformatted text preview: sell all eight boats for $1,500. The elasticity of demand at this price is -2. Is Homer maximizing profits?...
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This note was uploaded on 12/28/2009 for the course ECON 120 taught by Professor Walsh during the Fall '09 term at University of Illinois, Urbana Champaign.

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