Author Question: Which good most likely has the lowest elasticity of demand? A) Macintosh computers B) Toothpicks ... (Read 40 times)

Zulu123 · **on:** Jun 29, 2018

Which good most likely has the lowest elasticity of demand?

A) Macintosh computers
B) Toothpicks
C) Chemotherapy treatment
D) Sirloin steaks
E) VCR players

Question 2

Gene's Car Wash is a natural monopoly. To wash 100 cars a week, if Gene is unregulated, he would charge a price of 10. Gene's average total cost for washing 100 cars is 8, his average variable cost is 6, and his marginal cost is 4.

If Gene is regulated using a marginal cost pricing rule, the price he is allowed to charge to wash 100 cars is A) 10.
B) 8.
C) 6.
D) 4.
E) 400.