Please explain why true or false. 1. Total revenue is maximized when the price elasticity of supply is equal to -1. 2. Suppose that the demand curve for a company's product is inelastic between two points where it is considering operating. A revenue-maximizing producer should choose to produce at the point with the lower quantity demanded.

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter5: Elasticity
Section: Chapter Questions
Problem 2SCQ: From the data in Table 5.6 about supply of alarm clocks, calculate the price elasticity of supply...
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True or false.
Please explain why true or false.
1. Total revenue is maximized when the
price elasticity of supply is equal to -1.
2. Suppose that the demand curve for a
company's product is inelastic between two
points where it is considering operating. A
revenue-maximizing producer should
choose to produce at the point with the
lower quantity demanded.
Transcribed Image Text:True or false. Please explain why true or false. 1. Total revenue is maximized when the price elasticity of supply is equal to -1. 2. Suppose that the demand curve for a company's product is inelastic between two points where it is considering operating. A revenue-maximizing producer should choose to produce at the point with the lower quantity demanded.
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