If the Marginal Cost of Brewing Beer Is 40 Cents

question 6

Multiple Choice

If the marginal cost of brewing beer is 40 cents and the profit-maximizing price is 90 cents, then the price elasticity of demand is

• A) -2.
• B) -1.8.
• C) -2.33.
• D) -0.66.
• E) -3.

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Definitions:

Risk Society

A society where the management and prevention of risks, particularly those that are man-made, become central to social, political, and economic life.

Technological Determinism

The theory that technology shapes and determines the development of human social structure and cultural values.

Normal Accidents

The concept that in complex systems, accidents are unavoidable and inherent due to the intricate interactions and dependencies of system components.

Capital Investment

Money spent by a business entity to acquire or upgrade physical assets such as property, industrial buildings, or equipment to increase its long-term revenue.