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-Use the Figure Above to Answer This Question

Question 68

Multiple Choice

  -Use the figure above to answer this question. Mary is the only veterinarian in a small town and rents a space for her practice. If Mary's landlord decided to charge ________ per hour in rent, Mary would ________. A)  $20 more; still earn an economic profit because she is a monopolist B)  $30 more; operate on the inelastic portion of her demand curve C)  $30 more; earn $0 economic profit D)  $10 less; raise her prices and earn a higher profit E)  $20 more; earn $0 economic profit
-Use the figure above to answer this question. Mary is the only veterinarian in a small town and rents a space for her practice. If Mary's landlord decided to charge ________ per hour in rent, Mary would ________.


A) $20 more; still earn an economic profit because she is a monopolist
B) $30 more; operate on the inelastic portion of her demand curve
C) $30 more; earn $0 economic profit
D) $10 less; raise her prices and earn a higher profit
E) $20 more; earn $0 economic profit

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