"A profit-maximizing monopoly never produces an output in the inelastic range of its demand curve." True or false? Explain
What will be an ideal response?
The statement is true. The profit maximizing condition is MC = MR. If demand is inelastic, marginal revenue is negative. But marginal cost is never negative. So it's impossible to maximize profit producing an output in the inelastic range of the demand curve.
Economics
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Which of the following is NOT considered a consumption good?
A) Nike swimming trunks B) marriage counseling services C) a UPS truck D) a Subway sandwich E) a U.S. government bond
Economics
The flu vaccination example in Section 1.1 of the textbook is an example of how policy makers may cope with
A) scarcity of medical treatment. B) scarcity of patients. C) scarcity of policy makers. D) answering the question of how to produce.
Economics