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Author Question: A monopoly sets a price of $50 per unit for an item that has a marginal cost of $10. Assuming profit ... (Read 105 times)

Kikoku

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on: Mar 14, 2021

Question 1

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
◦ $1.00.
◦ $1.50.
◦ $2.00.
◦ $3.00.

Question 2

A monopoly sets a price of $50 per unit for an item that has a marginal cost of $10. Assuming profit maximization, the implicit demand elasticity is
◦ -0.2.
◦ -0.8.
◦ -1.25.
◦ -5.0.
Managerial Economics and Strategy ¦ Perloff, Brander ¦ 3rd Edition
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Marked as best answer by Kikoku on Mar 14, 2021

mariahkathleeen

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Reply #1 on: Mar 14, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Kikoku

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Reply 2 on: Mar 14, 2021
Great answer, keep it coming :)

adammoses97

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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