A monopolist has determined that at the current level of output the price elasticity of demand is -0.15. Which of the following statements is true?
A) The firm should cut output.
B) This is typical for a monopolist; output should not be altered.
C) The firm should increase output.
D) None of the above is necessarily correct.
A
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The economics of local school financing discourages school districts from attempting to maximize their tax base while minimizing enrollment size
Indicate whether the statement is true or false
Production of a small quantity of an input is often ________ as firms typically ________ able to enjoy economies of scale.
A) profitable; are B) profitable; are not C) unprofitable; are not D) unprofitable; are
Which is the most accurate statement about the Personal Responsibility and Work Opportunity Act of 1996?
A. The decline in the welfare rolls since the mid-to-late 1990s was due entirely to this law. B. This law was directly responsible for throwing millions of the poor out on the street. C. The law validated President Clinton's promise "to put an end to welfare as we know it." D. The law had very little success in removing people from the welfare rolls.
In general, an increase in wages will lead to some reaction in line with
A. the income effect but not the substitution effect. B. the substitution effect but not the income effect. C. both the income and substitution effect. D. neither the income effect nor the substitution effect.