Answer :
Mark up = selling price/ Marginal cost -1
Mark up=30/24 -1=0.25
Elasticity of demand= -1/Mark up= -1/0.25=-4
Firm Z is a monopolist that selss output at price $30/unit. If Firm Z's marginal cost...
12. Firm Z is a monopolist that sells its output at price $40/unit. If Firm Z's marginal cost of production is $32/unit, use the mark-up formula to find the elasticity of demand being faced by Firm Z. (Don't forget to include a minus sign in your answer!)
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1) 1) A single-price monopolist is currently producing an output level where P-520, MR = $13, ATC = $15, and MC = $14. In order to maximize profits, this monopolist should A) shut down B) decrease production and increase price. C) not change his output level, because he is currently at the profit-maximizing output level. D) increase production and reduce price. E) there is insufficient information to make a recommendation 2) 2) Consider a monopolist that is able to distinguish...
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