A price searcher faces the following demand function: At $7, 6, 5, 4, and $3, the quantity demanded is 300, 400, 500, 600, and 700 units respectively. If the firm's marginal cost is $300 at any level of output, it would maximize net revenues by
A) producing 400 units and charging $6.
B) producing 500 units and charging $5.
C) producing 600 units and charging $4.
D) producing 700 units and charging $3.
A
Economics
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Consumer surplus is the value of a good minus the cost of producing it, summed over the quantity bought
Indicate whether the statement is true or false
Economics
A monopolist claims his profit-maximizing markup factor is 10. What is the price elasticity of demand for the firm's product?
A. ?2.0 B. ?2.5 C. ?1.5 D. None of the answers are correct.
Economics