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If the Market Demand Elasticity Is Constant at -3 and a Monopolist's

Question 5

Multiple Choice

If the market demand elasticity is constant at -3 and a monopolist's MPL = 1.2L⁻⁰.⁵,then the labor demand for the monopoly is


A) 0.8PL⁻⁰.⁵.
B) 0.4PL⁻⁰.⁵.
C) 0.8PL⁻².
D) 0.4PL⁻².

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