If a Single-Price Monopolist Sets Price Where the Price Elasticity

question 31

Multiple Choice

If a single-price monopolist sets price where the price elasticity of demand exactly equals 1,its

• A)total profits are at a maximum.
• B)marginal revenue is always positive.
• C)total revenue is rising,although marginal revenue is falling.
• D)total revenue is falling.
• E)total revenue is at its maximum.

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Definitions:

Offshore Locations

Sites or jurisdictions outside a country's borders where businesses can operate under favorable legal, tax, or regulatory conditions.

Labor Costs

The total expenses incurred by employers to compensate their workforce, including wages, benefits, and taxes.

Dual Sourcing

A source strategy in which firms produce products in-house to ensure quality and availability while also purchasing the same products from suppliers in order to force competition and push innovation within the in-house unit.

Reshoring

The process of bringing manufacturing and production back to a company's original country from overseas to benefit from lower costs, better quality control, or tighter supply chain management.