Suppose a Monopolist Faces a Constant Elasticity Market Demand Curve

question 7

Multiple Choice

Suppose a monopolist faces a constant elasticity market demand curve with price elasticity equal to -2.What will be the price charged by this monopolist assuming constant marginal cost of 10.

• A)100
• B)80
• C)50
• D)30
• E)20
• F)10
• G)infinity
• H)None of the above

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