A monopoly produces widgets at a marginal cost of $10 per unit and zero fixed costs. It faces an inverse demand function given by P = 50 ? Q. The demand elasticity of a widget at the monopoly price and quantity is:
A. ?2.
B. 2.
C. ?2.5.
D. ?1.5.
Answer: D
Economics
You might also like to view...
According to Okun's Law, the year-to-year change in the rate of unemployment is ________ if the annual growth rate of real GDP is 5%
A) -5% B) 5% C) 2% D) -1%
Economics
Stocks and bonds are examples of:
a. natural resources. b. financial capital. c. physical capital. d. financial labor. e. internal capital.
Economics
The principle of diminishing marginal utility implies that total utility falls as consumption rises above a certain level
a. True b. False
Economics
If one adopts a pure free market approach to depletable resources, then one can expect the price of resources to
a. rise steadily. b. fall steadily. c. fluctuate in a random-walk fashion. d. remain unchanged.
Economics