Problem
Unique Creations holds a monopoly position in the production and sale of magnometers. The cost function facing Unique is estimated to be
TC = $100,000 + 20Q
a. What is the marginal cost for Unique?
b. If the price elasticity of demand for Unique is currently -1.5, what price should Unique charge?
c. What is the marginal revenue at the price computed in Part (b)?
d. If a competitor develops a substitute for the magnometer and the price elasticity increases to -3.0, what price should Unique 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.