A monopoly produces X at a marginal cost of $80 per unit and charges a price of $100 per unit.Determine the elasticity of demand at the profit-maximizing price of $100.
A) −5
B) −0.2
C) −0.8
D) There is insufficient information to determine the monopoly's price elasticity of demand.

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The Answer of A monopoly produces X at a marginal cost of $80 per unit and charges a price of $100 per unit.Determine the elasticity of demand at the profit-maximizing price of $100.
A) −5
B) −0.2
C) −0.8
D) There is insufficient information to determine the monopoly's price elasticity of demand.

A Monopoly Produces X at a Marginal Cost of $80