If There Are No Fixed Costs and Marginal Cost Is

question 29

Multiple Choice

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.

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Definitions:

Realized Gains

Profits earned from the sale of assets or investments when they are actually sold, as opposed to when they increase in value on paper.

Amortized Cost

The initial measurement of a financial asset or liability, adjusted for repayments of principal, accumulation of interest, and any loss in value.

Interest Income

Interest income is the revenue earned from deposit accounts or investments through the lending of money or the use of capital.