Suppose You Own a Firm That Produces Widgets and Is

question 7

Multiple Choice

Suppose you own a firm that produces widgets and is a monopoly. The market demand is given by the equation P = 100 - 2Q, where P is the price of gadgets and Q is the quantity of gadgets sold per week. The firm's marginal costs are given by the equation MC = 16Q. When the monopolist maximizes profits the price elasticity of demand for widgets is

• A)9.
• B)36.
• C)0.5.
• D)0.02.

---

Definitions:

Heart

A muscular organ in most animals, which pumps blood through the blood vessels of the circulatory system.

Ribs

Long, curved bones which form the rib cage, providing protection to the thoracic organs and supporting the upper body.

Patellar Region

Refers to the area of the body associated with the knee cap.

Sural Region

The area of the calf or posterior part of the lower leg.