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Author Question: If a natural monopoly is allowed to set its price above its average total cost, then A) the ... (Read 61 times)

dalyningkenk

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on: Jun 29, 2018
If a natural monopoly is allowed to set its price above its average total cost, then
 
  A) the company makes an economic profit.
  B) the company incurs an economic loss.
  C) competitors will enter the market.
  D) the company will produce more than the efficient amount of output.

Question 2

What does the elasticity of supply measure? How is it calculated?
 
  What will be an ideal response?


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bassamabas

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Reply #1 on: Jun 29, 2018
Answer to Question 1

A

Answer to Question 2

The elasticity of supply measures the response of quantity supplied to a change in price. It is calculated by dividing the percentage change in quantity supplied by the percentage change in price.


dalyningkenk

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

scikid

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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