If demand is perfectly inelastic, the absolute value of the price elasticity of demand is

Compared to the profit-maximizing outcome, average cost pricing in natural monopoly leads to

a. all of the following b. a higher price c. decreased consumer surplus d. the elimination of economic profit e. less output

A firm uses workers and seed to grow lettuce. Its lettuce output rises from 100 tons to 200 tons when the number of workers increases from 25 to 75 . Its production process shows

a. decreasing returns to scale. b. diminishing returns to labor. c. increasing long-run average cost. d. decreasing short-run average variable cost.