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13. A monopolist faces a constant marginal cost of $1 per unit and has no fixed costs. If the price elasticity of demand for this product is constant and equal to-3, then a. b. C. d. to maximize profits, he should charge a price of $1.50. to maximize profits, he should charge a price of $3. to maximize profits, he should charge a price of $1.33. he is not maximizing profits.

13. A monopolist faces a constant marginal cost of $1 per unit and has no fixed costs. If the price elasticity of demand for this product is constant and equal to-3, then a. b. C. d. to maximize profits, he should charge a price of $1.50. to maximize profits, he should charge a price of $3. to maximize profits, he should charge a price of $1.33. he is not maximizing profits.

Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter14: Monopoly
Section: Chapter Questions
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13. A monopolist faces a constant marginal cost of $1 per unit and has no fixed costs. If the price elasticity of demand for this product is constant and equal to -3, then a. b. c. d. e. to maximize profits, he should charge a price of $1.50. to maximize profits, he should charge a price of $3. to maximize profits, he should charge a price of $1.33. he is not maximizing profits. None of the above.
Transcribed Image Text:13. A monopolist faces a constant marginal cost of $1 per unit and has no fixed costs. If the price elasticity of demand for this product is constant and equal to -3, then a. b. c. d. e. to maximize profits, he should charge a price of $1.50. to maximize profits, he should charge a price of $3. to maximize profits, he should charge a price of $1.33. he is not maximizing profits. None of the above.
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