Problem
The marginal cost of preparing a large latte in a specialty coffee house is $1. The firm's market research reveals that the elasticity of demand for its large lattes is constant, with a value of about -1.3. If the firm wants to maximize profit from the sale of large lattes, about what price should the firm charge?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.