Refer to the Following Figure

question 70

Multiple Choice

Refer to the following figure:

The figure above shows the demand and cost curves facing a price-setting firm.
-In profit-maximizing (or loss-minimizing) equilibrium, the Lerner index is _____, and the elasticity of demand is ______.

• A) 1 ; -1
• B) 0.6; -1.667
• C) 0.5; -2.0
• D) 0.667; -1.5
• E) 1.33; -0.75

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Definitions:

Unethical

Acting in ways that go against moral principles, often causing harm or showing a lack of integrity.

Positive Effect

An outcome or result that is beneficial or favorable.

Purchase Invoice

A document provided by a seller to a buyer, detailing the items purchased, their prices, and the total amount owed.

Positive Effect

A beneficial outcome or impact resulting from a specific cause or action.