A big-push strategy for economic development relies heavily on government-sponsored and financed investments

Explain how the real wage and the extra output produced by each worker determine the quantity of labor demanded by a firm

What will be an ideal response?

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