A monopolist has the following Demand and Marginal Revenue equations: (where P =

Question

A monopolist has the following Demand and Marginal Revenue equations:

(where P = Price, Q = Quantity)

Assume that this monopoly is a profit maximizing firm who is only willing to sell each unit at the same price.  Once the firm decides on an output level, the firm will face a certain value of own-price elasticity (Ed). Regardless of what the firm's MC and AC might be, which of the following values for own-price elasticity will the firm never face: (ChoosOne)

Ed = -1.99

Ed = -1.80

Ed = -1.65

Ed = -1.22

Ed = -1.00

Ed = -0.94

none of the above (i.e. this monopolist could face any of these values for Ed)

Explanation / Answer

c.

Ed = -1.65

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects