I need help with the following question:
The manager of a local monopoly estimates that the elasticity of demand for its product is constant and equal to -3. The firm’s marginal cost is constant at $25 per unit.
a. Express the firm’s marginal revenue as a function of its price.
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Instruction: Round your response to 2 decimal places.
MR = ____ x P
b. Determine the profit-maximizing price.
Instruction: Use the rounded value calculated above and round your response to 2 decimal places.