Input demand functions that are calculated from profit functions ...

[bcretired]

Input demand functions that are calculated from profit functions differ from those calculated from cost functions because:
 a. they assume cost-minimization.
  b. they hold output constant.
  c. they assume output price is constant.
  d. they assume output is set at its profit-maximizing level.

Question 2

The optimal mark-up is: m = -1/ (E+1). When the mark-up on cookware equals 50, then demand elasticity (E) for cookware is:
 a. -1
  b. -1.5
  c. -2
  d. -3

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Answer to Question 1

d

Answer to Question 2

c