Assume you have been hired to advise two different firms,A and B,regarding the price each firm should charge for its product,focusing on the amount each firm should mark up price over marginal cost.While both firms are price setters,the product produced by firm A is extremely unique and enjoys widespread appeal.In contrast,firm B sells a fairly standard product for which there are are several good,but not perfect,substitutes.How would your advice to each firm differ? How does the price elasticity of demand influence your recommendations?
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