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Author Question: A monopoly incurs a marginal cost of 1 for each unit produced. If the price elasticity of demand ... (Read 41 times)

stephzh

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on: Jul 1, 2018
A monopoly incurs a marginal cost of 1 for each unit produced. If the price elasticity of demand equals -2.0, the monopoly maximizes profit by charging a price of
 
  A) 1.00.
  B) 1.50.
  C) 2.00.
  D) 3.00.

Question 2

If a firm is operating at an output level where losses are minimized, the firm
 
  A) has no incentive to stay in the industry.
  B) is better off exiting the industry.
  C) is maximizing profits.
  D) will shut down.
Microeconomics ¦ Perloff ¦ 8th Edition
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kjo;oj

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Reply #1 on: Jul 1, 2018
Answer to Question 1

C

Answer to Question 2

C


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stephzh

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Reply #2 on: Jul 1, 2018
Thank you


kjo;oj

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Reply #3 on: Jul 1, 2018
No problemo


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