Suppose it costs Minnie's Mini-Golf (a monopolist) not a penny more to let another person on the course. If Minnie's faces a linear (downward-sloping) market demand curve, it will maximize profit by choosing the point on the demand curve at which
a. marginal revenue is greatest
b. price elasticity is unit elastic
c. price elasticity is inelastic
d. price exceeds average total cost by the greatest amount
e. price exceeds marginal cost by the greatest amount
B
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The number of live births per 1000 people in the population per year is the
(a) hidden momentum of population growth. (b) population growth rate. (c) demographic transition. (d) crude birth rate.
If two groups disagree about a policy, a smaller group that experiences higher benefits per person can be:
A. the one less likely to get its way. B. as successful as a larger group with smaller benefits per person, but typically not more. C. more difficult to bargain due to the small size of the group. D. the one more likely to get its way.
Moral hazard occurs when the parties on once side of the market, who have information not known to others, self select in a way that adversely affects the parties on the other side of the market
Indicate whether the statement is true or false
Scientific research is subsidized by the government because:
A. it yields benefits to consumers and producers who did not participate in the research. B. researchers are underpaid by private firms, so the government must make up the difference. C. much scientific research takes place at state-funded universities. D. scientific research has no market value and so would not be undertaken without government intervention.