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
B
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Answer the following statements true (T) or false (F)
1) The Sherman Act was passed in 1914. 2) The Clayton Act was the second major piece of antitrust legislation. 3) The Federal Trade Commission Act and the Sherman Act were passed in the same year. 4) The Antitrust Division of the Department of Justice enforces antitrust laws through both civil and criminal suits. 5) Actions that violate the Sherman Act can result in penalties that total substantially more than $100 million.
Isabel noted that whenever she wore her green contact lenses, the Chicago White Sox would win that evening. Based on this observation, she developed the "green-eyes-for-White-Sox" theory of winning. It is most likely true that Isabel
A. committed the fallacy of logic. B. showed good reasoning for the reason the White Sox would win. C. committed the ceteris paribus error. D. was confusing causality.