If a Monopolist Knows Its Price Elasticity of Demand Is

question 200

Multiple Choice

If a monopolist knows its price elasticity of demand is greater than one,then a(n) _____ in price will _____ total revenue.

• A)increase;increase
• B)decrease;increase
• C)decrease;decrease
• D)increase;not change

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Definitions:

Mix Variance

Captures the effect of substitution among the products, holding constant the number of units sold.

Direct Labor

The cost associated with employees who are directly involved in the production of goods or services.

Direct Labor Efficiency Variance

A measure used in cost accounting to evaluate the difference between the actual hours worked and the standard hours expected for the production achieved.

Direct Materials Price Variance

The difference between the actual cost of direct materials and the expected (or standard) cost of those materials.