If the Market Demand Elasticity Is Constant at -3 and a Monopolist's

question 13

Multiple Choice

If the market demand elasticity is constant at -3 and a monopolist's MPL = 1.2L^-0.5,then the labor demand for the monopoly is

• A)0.8PL^-0.5.
• B)0.4PL^-0.5.
• C)0.8PL^-2.
• D)0.4PL^-2.

---

Definitions:

Erosion

The gradual wearing away or removal of land or material by natural forces such as wind, water, or ice.

New Product

An item recently introduced to the market that serves a particular need or niche, differing from existing products in some significant way.

Erosion

In finance, the gradual reduction of earnings or assets, often due to competition or other external factors.

Patent

A form of intellectual property right granting the patent holder the exclusive right to make, use, sell, and offer for sale the patented invention for a certain period of time.