Explain how a profit-maximizing manager should decide what goods to put on sale based on the relationship between total revenue and price elasticity of demand.

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Price elasticity of demand is an important tool for managers in in a selling environment in deciding what to put on sale. Explain how a profit-maximizing manager should decide what goods to put on sale based on the relationship between total revenue and price elasticity of demand. Provide appropriate examples as needed.

With appropriate examples explain how marginal cost is related only to total variable cost.

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