A monopoly incurs a marginal cost of $3 for each unit produced. If the price elasticity of demand equals -2.5, the monopoly maximizes profit by charging a price of
Hint: Numbers have been revised, must perform calculation in order to get the correct answer. Recall the Monopoly Pricing formula using Demand Elasticity and use it to price.
A.$5.00.
B.$3.00.
C.$4.00.
D.$5.50.