A Single-Price Monopolist Will Always Produce Where the Elasticity of Demand

question 70

Multiple Choice

A single-price monopolist will always produce where the elasticity of demand

• A) is greater than 1.
• B) is smaller than 1.
• C) equals 1.
• D) equals infinity.

---

Definitions:

Marginal Product

The additional output gained by employing one more unit of a given input.

Resource Maximization

It is the technique or strategy of optimally utilizing resources to achieve the highest possible output or efficiency.

Least-costly Combination

A perfect combination of resources that lowers the production cost while reaching a target output level.

Profits

Financial gains realized when the revenues from business activities exceed the expenses, costs, and taxes needed to sustain the operation.