If the demand elasticity for a product is -2,and a profit-maximizing firm sells the product for $10,its marginal cost must be
A)$5.
B)$10.
C)$15.
D)$8.

Name: If the demand elasticity for a product is -2,and a profit-maximizing firm sells the product for $10,its marginal cost must be A)$5. B)$10. C)$15. D)$8.
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Question

Quizplus · Accepted Answer

Given the demand elasticity of -2 and the product's price of $10, the marginal revenue is zero when the price is twice the marginal cost, leading to a marginal cost of $5.

If the Demand Elasticity for a Product Is -2,and a Profit-Maximizing