« previous next »

Author Question: A profit-maximizing monopolist operates where demand is: a. inelastic. b. unit elastic. c. elastic. ... (Read 35 times)

chandani

  • Hero Member
  • *****
  • Posts: 541
on: Jun 30, 2018
A profit-maximizing monopolist operates where demand is:
 a. inelastic.
 b. unit elastic.
 c. elastic.
 d. infinitely elastic.

Question 2

Suppose the production of helicopters is an industry characterized by increasing returns to scale and an Argentine firm, Cicare, is the only player in this market. The firm caters to the global market and earns a profit of 10 million. Flettner, a German firm has been considering entering this market for a while, but it is aware that its entry will cause each firm to lose about 4 million. Although a government subsidy allows Flettner to enter the helicopter market, the company is unable to reap profits in the long run. Which of the following could have led to this outcome?
 a. Flettner experienced high production costs due to inadequate supply of inputs.
  b. New firms entered the helicopter industry.
  c. The German government ran a balance of payment deficit.
  d. The Argentine government retaliated by subsidizing Cicare.
  e. There was very low investment in research and development in this industry.


mmj22343

  • Sr. Member
  • ****
  • Posts: 297
Reply #1 on: Jun 30, 2018
Answer to Question 1

c

Answer to Question 2

d


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Signs of depression include feeling sad most of the time for 2 weeks or longer; loss of interest in things normally enjoyed; lack of energy; sleep and appetite disturbances; weight changes; feelings of hopelessness, helplessness, or worthlessness; an inability to make decisions; and thoughts of death and suicide.

Did you know?

Patients who have been on total parenteral nutrition for more than a few days may need to have foods gradually reintroduced to give the digestive tract time to start working again.

Did you know?

Warfarin was developed as a consequence of the study of a strange bleeding disorder that suddenly occurred in cattle on the northern prairies of the United States in the early 1900s.

Did you know?

Each year in the United States, there are approximately six million pregnancies. This means that at any one time, about 4% of women in the United States are pregnant.

Did you know?

The most common treatment options for addiction include psychotherapy, support groups, and individual counseling.

A factory replacement unit for a CSFI unit that has individual injectors at the ends that go into ... A factory replacement unit for a CSFI unit that has individual injectors at the ends that go into ...
Schematic depiction of the action of tryptophan synthase in one functional unit Schematic depiction of the action of tryptophan synthase in one functional unit
The growth in demand for oil in China is driven by the growth in demand for personal transport The growth in demand for oil in China is driven by the growth in demand for personal transport
Economic recession in 2008 saw a small decrease in demand Economic recession in 2008 saw a small decrease in demand
Insulin Syringes: 100 Unit (A), 50 Unit (B), and 30 Unit (C) Insulin Syringes: 100 Unit (A), 50 Unit (B), and 30 Unit (C)
100-Unit Insulin Syringe 100-Unit Insulin Syringe
Video: Phases of the Female Reproductive Cycle - Hormonal regulation

For a complete list of videos, visit our video library