This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: A single-price monopolist will always charge a price that is on the elastic range of its demand. ... (Read 54 times)

CORALGRILL2014

  • Hero Member
  • *****
  • Posts: 525
on: Jun 29, 2018
A single-price monopolist will always charge a price that is on the elastic range of its demand. Explain why the previous statement is correct or incorrect.
 
  What will be an ideal response?

Question 2

The marginal social benefit is the sum of the benefit enjoyed by the consumer of an additional unit of a good or service plus the marginal benefit enjoyed by others.
 
  Indicate whether the statement is true or false


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ladyjames123

  • Sr. Member
  • ****
  • Posts: 346
Reply #1 on: Jun 29, 2018
Answer to Question 1

The statement is correct. Only when the demand is elastic is marginal revenue positive. (When demand is unit elastic, marginal revenue is zero and when demand is inelastic marginal revenue is negative.) Because marginal cost is always positive, a single-price monopolist will always produce in the elastic range of its demand because it produces where marginal cost equals marginal revenue. Hence the price that the monopolist sets will always be on the elastic range of its demand.

Answer to Question 2

TRUE


CORALGRILL2014

  • Member
  • Posts: 525
Reply 2 on: Jun 29, 2018
Wow, this really help

meow1234

  • Member
  • Posts: 333
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

The first monoclonal antibodies were made exclusively from mouse cells. Some are now fully human, which means they are likely to be safer and may be more effective than older monoclonal antibodies.

Did you know?

Blood is approximately twice as thick as water because of the cells and other components found in it.

Did you know?

To prove that stomach ulcers were caused by bacteria and not by stress, a researcher consumed an entire laboratory beaker full of bacterial culture. After this, he did indeed develop stomach ulcers, and won the Nobel Prize for his discovery.

Did you know?

Many of the drugs used by neuroscientists are derived from toxic plants and venomous animals (such as snakes, spiders, snails, and puffer fish).

Did you know?

Approximately 15–25% of recognized pregnancies end in miscarriage. However, many miscarriages often occur before a woman even knows she is pregnant.

Mendel's analyses of single-factor crosses Mendel's analyses of single-factor crosses
Environmental influences on the expression of PKU within a single family Environmental influences on the expression of PKU within a single family
How a catalyst circumvents unfavorable charge development during cleavage of an amide How a catalyst circumvents unfavorable charge development during cleavage of an amide
Basin and Range Province—Crust Extended Basin and Range Province—Crust Extended
Sketch the graph of each function using transformations. State the domain and range. Sketch the graph of each function using transformations. State the domain and range.
If the price charged for a candy bar is p(x) cents, then x thousand candy bars will be sold in ... If the price charged for a candy bar is p(x) cents, then x thousand candy bars will be sold in ...
Video: Arthroscopy

For a complete list of videos, visit our video library