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.
C
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How do we derive the short-run market supply curve in perfect competition?
What will be an ideal response?
Refer to Figure 11-8 above to answer the following questions
a. Identify the curves in the diagram. A ________ B ________ C ________ b. What is the numerical value of fixed cost when the quantity of output=10? c. What is the numerical value of variable cost when the quantity of output=10? d. What is the numerical value of total cost when the quantity of output =10? e. What is the numerical value of average fixed cost when the quantity of output =10? f. What is the numerical value of average total cost when the quantity of output =10? g. On the graph identify the area that represents the total variable cost of production when the quantity of output =10. h. On the graph identify the area that represents the fixed cost of production when the quantity of output =10.