Suppose the Equilibrium Price in the Market Is $100 and the Marginal

question 41

Multiple Choice

Suppose the equilibrium price in the market is $100 and the marginal revenue associated with the linear (inverse) demand function is $50.Then we know that the own price elasticity of demand is

• A)-1.
• B)1.
• C)2.
• D)cannot be determined from the information contained in the question.

---

Definitions:

Cost to Retail Ratio

A ratio used in inventory management that compares the cost of goods sold to the retail price of the goods.

Cost Flow

The manner in which costs move through a company’s accounts, typically following either a FIFO, LIFO, or weighted average approach in costing inventory.

Average Cost

A method to calculate the cost per unit by dividing total costs of goods available for sale by the total units available for sale, used in inventory valuation.

Last-In, First-Out

An inventory valuation method that assumes the items most recently purchased or produced are sold first, leaving older inventory in stock.