The marginal social cost (MSC) curve
a. lies above the market demand curve
b. lies below the market supply curve
c. is perfectly elastic at the market price
d. is perfectly inelastic
e. indicates the total cost of production, when all costs are considered
E
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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
When an item being auctioned has correlated values and bidders use their optimal strategies, a(n) ________ auction has the highest expected revenue as it has the ________ reduction in bidders' valuations.
A) English; smallest B) Dutch; smallest C) Dutch; largest D) English; greatest