At the profit-maximizing level of output, the amount by which the firm can mark up price is:
A) inversely related to the price elasticity of demand for item in question.
B) directly related to the price elasticity of demand for item in question.
C) totally unrelated to the price elasticity of demand for item in question.
D) equal to the ratio of the marginal and average costs of production.
A
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Use the above table. What will the price be when external costs are internalized with a tax?
A) $14 B) $13 C) $12.20 D) $1.80
In the short run, a firm cannot change its level of output
Indicate whether the statement is true or false
One way to attain a faster rate of economic growth would be to shift some resources from the production of _________ goods to the production of __________ goods.
Fill in the blank(s) with the appropriate word(s).
Exhibit 6-2 Total utility for hamburgers, fries, and Cokes Total Utilityfrom Hamburgers Total Utilityfrom Fries Total Utilityfrom Cokes 1 hamburger (100 utils) 1 order of fries (30 utils) 1 Coke (40 utils) 2 hamburgers (180 utils) 2 orders of fries (50 utils) 2 Cokes (60 utils) 3 hamburgers (240 utils) 3 orders of fries (60 utils) 3 Cokes (70 utils) In Exhibit 6-2 assume that the price of hamburgers is $2 each, fries cost 50 cents each, and Cokes cost $1 each. What is the marginal utility of having a second order of fries?
A. 10 utils. B. 20 utils. C. 30 utils. D. 50 utils.