What's the rule: Monopolists charge a higher markup when demand is highly elastic or when it's highly inelastic?
Answer: Highly inelastic
You might also like to view...
Answer the following statement(s) true (T) or false (F)
1. A Pigouvian tax is a charge on a good whose production generates a negative externality, such that the charge isequal to the MEC at the competitive output level.
2. In the single-polluter case, a firm faced with an emission charge for pollution implemented as a marginal tax (MT) will abate as long as MAC
Suppose that a consumer is at an optimum consuming X and Y. If the price of X falls, then to get to a new equilibrium the consumer must
A) purchase less X and more Y. B) purchase less Y and less X. C) purchase more X. D) purchase more Y.
Social Security payroll taxes are examples of
A. progressive taxation. B. regressive taxation. C. proportional taxation. D. marginal taxes.
The idea that a consumer is limited to selecting a bundle of goods that is affordable is captured by the:
A. indifference curve. B. budget constraint. C. price changes. D. consumer equilibrium.