Question

A profit-maximizing firm with market power will always produce a level of output where a. demand...

A profit-maximizing firm with market power will always produce a level of output where

a. demand is elastic.

b. demand is inelastic.

c. price is greater than average total cost.

d. marginal revenue is greater than average total cost.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Answer

Option

a. demand is elastic.

A firm with power has a downward-sloping demand curve and it producer at MR=MC where MC>0 and demand is elastic when MR>0, MR=0 then unit elastic and MR<0 then inelastic.

Add a comment
Know the answer?
Add Answer to:
A profit-maximizing firm with market power will always produce a level of output where a. demand...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT