Consider a monopoly facing a demand structure where the price elasticity of demand is ?1.25. The optimal markup factor is:
A. 5 times marginal revenue.
B. 0.2 times marginal cost.
C. 0.2 times marginal revenue.
D. 5 times marginal cost.
Answer: D
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There was a spike in U.S. legal immigration from 1989 to 1991 due to:
A. An unstable political situation in Mexico B. Increased international travel C. Tremendous economic growth in the U.S. economy D. An amnesty program legalizing formerly illegal immigrants
For twenty years, Jim was a customer service representation at a call center in Minnesota. In order to save money, his firm moved the call center to India and laid off Jim two years ago. Jim has been unable to find a similar job anywhere
Jim's unemployment is best classified as A) cyclical. B) competitive. C) structural. D) frictional. E) transported.
With the exception of the U.S., the majority of the world's trading partners utilized the gold standard
Indicate whether the statement is true or false
In order to maximize profits, multinationals typically use transfer pricing by showing ________ profits in the high-tax country and by showing ________ profits in the low-tax country
A) high; low B) low; high C) economic; normal D) above-normal; accounting