Suppose a Monopolist Produces a Positive Level of Output

question 32

True/False

Suppose a monopolist produces a positive level of output.If marginal costs are zero, this output level will occur where price elasticity of demand is exactly -1 unless there are recurring fixed costs.

---

Definitions:

Homology

in biology, refers to traits or organs that have a common ancestry despite potentially having different functions, while in cultural studies it can refer to similarities in patterns or structures based on shared heritage.

Subspecies

A subdivision within a species, characterized by distinct genetic, morphological, or behavioral traits, often resulting from geographical isolation.

Genus

A rank in the biological classification system (taxonomy) that groups together species that are closely related, sharing a common ancestor.

Species

A group of living organisms consisting of similar individuals capable of exchanging genes or interbreeding, classified together as having common characteristics.