In Problem 6, If There Are No Fixed Costs and Marginal

question 4

Multiple Choice

In Problem 6, if there are no fixed costs and marginal cost is constant at $48, the price elasticity of demand at the profit-maximizing level of output is closest to

• A) -5.69.
• B) -0.35.
• C) -11.38.
• D) -2.85.
• E) -0.18.

---

Definitions:

Acquaintanceship

A social relationship between individuals who know each other, but not to the extent of a close friendship.

Confidence

The feeling or belief that one can rely on someone or something; firm trust.

Philosopher

An individual engaged in the study, analysis, and critique of fundamental questions regarding existence, knowledge, values, reason, mind, and language.

Sociologist

An expert in the study of society and social relationships, analyzing patterns of social interactions and the organization of groups.