One Year Many Customers' Machinery Wears Out and Needs to Be

question 128

Multiple Choice

One year many customers' machinery wears out and needs to be replaced. The following year no customers need new machinery. This is an example of ________ demand.

• A) inelastic
• B) fluctuating
• C) elastic
• D) consumer
• E) static

Recognize the impact of fixed and variable costs on monopoly pricing and quantity decisions in the short run.

Comprehend the relationship between marginal cost (MC), marginal revenue (MR), and price (P) in maximizing monopoly profits.

Analyze the effects of demand changes on monopoly's pricing and output decisions.

Grasp how monopolies respond to increases and decreases in marginal costs.