Cary increases the price of her cakes from $8 to $10 per cake, but her cash receipts decrease by 2 percent. The price elasticity of demand (in the $8 to $10 range) is

In the above figure, if the natural monopoly is regulated using an average cost pricing rule, but the firm can pad its costs and make the regulator believe its costs are LRAC (inflated), then the price the firm charges will increase from

A) $18 to $24. B) $12 to $24. C) $12 to $18. D) $18 to $36.

Refer to Table 1-6. What is Ivan's marginal benefit if he decides to stay open for six hours instead of five hours?

A) $10 B) $20 C) $30 D) $91.67