The Inverse Demand Equation for a Monopoly Firm Is P

Multiple Choice

The inverse demand equation for a monopoly firm is P = 60 - 0.015Q.The monopolist faces constant costs of production in the long run with LAC = LMC = $30.At the profit-maximizing price,the elasticity of demand is ________,which is __________ (elastic,inelastic,unit elastic) as expected.

A) -1.0; unit elastic
B) -3.0; elastic
C) -0.50; inelastic
D) -2; elastic
E) none of the above