Scenario 10.3: The Demand Curve and Marginal Revenue Curve for Red Herrings

Multiple Choice

Scenario 10.3:
The demand curve and marginal revenue curve for red herrings are given as follows:
Q = 250 - 5P
MR = 50 - 0.4Q
-Refer to Scenario 10.3. At the profit-maximizing level of output, demand is:

A) completely inelastic.
B) inelastic, but not completely inelastic.
C) unit elastic.
D) elastic, but not infinitely elastic.
E) infinitely elastic.