A profit-maximizing monopolist will never operate in the portion of the demand curve with price elasticity equal to
A) -3.
B) -1.
C) -1/3.
D) Any of the above—the price elasticity does not matter.
C
You might also like to view...
An example of an essential facility is
A) the telephone line into your house. B) U.S. Route 66. C) the Golden Gate Bridge. D) your local pizza parlor.
Which of the following pairs is the most likely to exhibit an inverse relationship?
a. The price of a concert and the number of tickets people purchase. b. Baseball players' salaries and their batting averages. c. People's annual income and their expenditure on personal computers. d. The amount of time you study and your grade point average.
The stimulus package of 2009 had the effect of
A. reducing the primary government deficit. B. giving new foreign aid to help less developed countries. C. causing higher rates of inflation to occur. D. significantly raising the debt to GDP ratio.
Which of the following would shift the supply curve to the left?
A) A fall in the expected future price of the good B) A rise in the expected future price of the good C) A rise in technology that lowers the cost of producing the good D) A positive supply shock that brings more output onto the market