A monopolist claims his profit-maximizing markup factor is 10. What is the price elasticity of demand for the firm's product?
A. ?2.0
B. ?2.5
C. ?1.5
D. None of the answers are correct.
Answer: D
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When individuals or firms make an investment, they incur costs today in the hope of future gains
Indicate whether the statement is true or false
Demand for the Brazilian real is
A) determined by how well the real maintains its value. B) a function of the Brazilian banking system. C) derived from the supply of U.S. dollars. D) derived from the demand for Brazilian goods.
A decrease in income causes demand for a normal good to ________, and an increase in income causes demand for an inferior good to ________.
Fill in the blank(s) with the appropriate word(s).
To maximize its profits, a monopsonist will hire labor the quantity of labor at which marginal revenue product of labor
a. is downward sloping and equal to the market wage rate. b. is downward sloping and equal to its marginal labor cost. c. minus marginal labor cost is maximized. d. is maximized.