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. ?0.2
B. ?0.8
C. ?5
D. There is insufficient information to determine the monopoly's price elasticity of demand.
Answer: C
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If Abigail can produce 4 tablets or 3 cellphones in a day, while Jacob can produce 1 tablet or 2 cellphones, then it is correct to state that
A) Abigail has a comparative advantage in producing cellphones. B) Abigail has an absolute advantage in producing tablets but not cellphones. C) Jacob has a comparative advantage in cellphones. D) Jacob has an absolute advantage in cellphones.
Each point along a nation's production possibilities frontier represents efficient use of all resources
a. True b. False
Most economists argue that an effective monetary policy would
a. create money faster during recessions and more slowly during booms. b. create money faster all the time. c. create money more slowly all the time. d. create money faster during booms and more slowly during recessions. e. create money slowly during booms and not at all during recessions.
Which of the following statements is not true?
A. There is a wage premium for investing in high levels of education. B. The wage premium of men and women college graduates has been increasing over time. C. Better-educated individuals are more productive. D. Public policy initiatives that support on-the-job training have been met with mixed results.