If a monopolist is producing a level of output at which demand is inelastic, then
A. the firm is not maximizing profit.
B. marginal revenue is positive.
C. total revenue will decrease if the firm produces more output.
D. both a and b
E. both a and c
Answer: E
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The figure above shows the market for tires. According to the figure, the price elasticity of demand is ________ the price elasticity of supply
A) greater than B) equal to C) less than D) not comparable to E) More information is needed to determine if the price elasticity of demand is greater than, equal to, less than, or comparable to the price elasticity of supply.
In the last 40 years, merger policy has become a major way for antitrust authorities to regulate market structure
Indicate whether the statement is true or false
The official data on employment and unemployment in the U.S. economy are derived from
What will be an ideal response?
Your annual review is given to you at your place of employment, and you get a raise of 3 percent for the next year. On the subway home though, you read an article stating the price of homes in the area you are looking to buy will increase by 6 percent during the coming year. You determine from the article that if you buy in your favorite neighborhood
A. your purchasing power declines. B. quantity demanded will increase. C. your real income actually increases. D. consumer optimum is reached.