A Monopoly Incurs a Marginal Cost of $1 for Each

question 86

Multiple Choice

A monopoly incurs a marginal cost of $1 for each unit produced.If the price elasticity of demand equals -2.0,the monopoly maximizes profit by charging a price of

• A) $1.00.
• B) $1.50.
• C) $2.00.
• D) $3.00.

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Definitions:

Hegemony

The struggle over the establishment of certain meanings and ideas in society. A group maintains hegemony when it is able to create a worldview that other people and groups actively support, even though that worldview may not be in their interests. Hegemony operates when the taken for granted system of meanings that everyone shares functions in the best interests of the dominant group.

Ethnographic Study

is a qualitative research method focused on the systematic study of people and cultures from the perspective of the subject or community, often through participant observation.

Machine Tool Factory

An industrial facility where machine tools are manufactured, which are devices used for shaping or machining metal or other rigid materials.

Reification

Treating an abstraction as if it were a concrete, real event or physical entity.