Multiple Choice
Suppose a profit maximizing monopolist has total costs C(Y) = 10Y. The monopolist is charging a profit maximizing price or p = 15. If market demand has a constant price elasticity, then the price elasticity of demand must be equal to:
A) 1.
B) 3.
C) 3/2.
D) 2/3.
Correct Answer:
Verified
Correct Answer:
Verified
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