You are hired as a production analyst at Monopoly-R-Us and you ...

[fahad]

You are hired as a production analyst at Monopoly-R-Us and you estimate that, at current output, demand is inelastic and marginal cost is positive. You advise your superiors that they can increase profit by
 a. raising price until demand becomes unit elastic
  b. raising price into the elastic range
  c. lowering price until demand becomes unit elastic
  d. lowering price into the elastic range
  e. reduce output without changing price

Question 2

Producers play a disproportionately large role in influencing public regulation because they have a strong interest in matters that affect their specialized source of income.
 a. True
  b. False

[laurnthompson]

Answer to Question 1

B

Answer to Question 2

A