The optimal mark-up is: m = -1/ (E+1). When the mark-up on cookware equals 50%, then demand elasticity (E) for cookware is:
a. -1
b. -1.5
c. -2
d. -3
c
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The three welfare goals: adequate income, work incentives, and minimize costs are irreconcilable
Indicate whether the statement is true or false
Distinguish between a command-and-control economic system and a price system
What will be an ideal response?
Which of the following both make the sacrifice ratio higher than otherwise?
a. the Phillips curve is steep, inflation expectations adjust quickly. b. the Phillips curve is steep, inflation expectations adjust slowly. c. the Phillips curve is flat, inflation expectations adjust quickly d. the Phillips curve is flat, inflation expectations adjust slowly.
A monopolist maximizes profit by producing the output at which marginal revenue equals marginal cost.
Answer the following statement true (T) or false (F)