Answer to Question 1
When demand is inelastic, quantity demanded changes by a smaller percentage than does the price. As a result, a firm could increase total revenue simply by reducing output and raising price. At the same time, reducing output reduces total production costs. If total revenue rises and total costs fall, profit increases. Therefore, a profit-maximizing monopolist should reduce output and increase price until it is no longer operating along the inelastic portion of the demand curve. Rather, a profit-maximizing monopolist will always operate along the elastic portion of the demand curve.
Answer to Question 2
a
Negative feedback as a mechanism by which homeostatic control systems operate.
Oxygen dissociation curve
The physician and medical assistant will often work together to choose appropriate educational ...
Marginal Supply - Demand Curve
Portion Sizes Who says you shouldn’t eat with your hands?
The Lorenz Curve for the United States, 2009