A monopoly sets a price of $50 per unit for an item that has a marginal cost of $10. Assuming profit maximization, the implicit demand elasticity is
A) -0.2.
B) -0.8.
C) -1.25.
D) -5.0.
C
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Suppose the market-clearing price of wheat is $2.50 per bushel. At a price below $2.50,
A) supply would equal demand. B) quantity supplied would equal quantity demanded. C) quantity supplied would exceed quantity demanded. D) quantity supplied would be less than quantity demanded.
A $2.00 tax levied on the sellers of birdhouses will shift the supply curve
a. upward by exactly $2.00. b. upward by less than $2.00. c. downward by exactly $2.00. d. downward by less than $2.00.
According to the public interest view, economic regulation is always in the special interest of existing producers
Indicate whether the statement is true or false
When real interest rates fall in the United States relative to interest rates in Japan, the yen appreciates and the dollar depreciates
Indicate whether the statement is true or false