[32] A profit-maximizing monopolist is currently selling its product at a price which is 4 times its marginal cost. Accordingly, provided the firm is maximizing profit, the current price elasticity of demand is:   A. elastic   B. inelastic   C. unit elastic

Survey Of Economics
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ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter8: Monopoly
Section: Chapter Questions
Problem 15SQ
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[32] A profit-maximizing monopolist is currently selling its product at a price which is 4 times its marginal cost. Accordingly, provided the firm is maximizing profit, the current price elasticity of demand is:

 

A. elastic

 

B. inelastic

 

C. unit elastic

 

[34] Suppose the market demand for caviar is given by Q = 40 - 2P, where Q is quantity demand and P is price. In which range below is the price elasticity of demand in the elastic category? A. 0 < P < 6

 

B. 30 < Q < 35

 

C. 12 < P < 15

 

D. Q > 25

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