Author Question: Suppose that the demand for my new book, Spatulas From Around the World, is such that the demand ... (Read 45 times)

Kthamas · **on:** Jun 30, 2018

Suppose that the demand for my new book, Spatulas From Around the World, is such that the demand curve lies everywhere below the average variable cost of producing it. To maximize profits or minimize losses, I should
a. raise price
b. lower price to increase demand
c. shut down the presses printing my book
d. lower price until demand is inelastic
e. charge the highest price I can

Question 2

A natural monopoly is a firm that experiences economies of scale over the range of market demand.
a. True
b. False