A Monopolist Faces a Constant Marginal Cost of $1 Per

question 49

Multiple Choice

A monopolist faces a constant marginal cost of $1 per unit.If at the price he is charging, the price elasticity of demand for the monopolist's output is -0.5, then

• A)the price he is charging must be $2.
• B)the price he is charging must exceed $2.
• C)the price he is charging must be less than $2.
• D)the monopolist cannot be maximizing profits.
• E)the monopolist must use price discrimination.

---

Definitions:

Quiet Music

Music that is soft and low in volume, often used to induce relaxation or concentration.

Annoyed

A feeling of irritation or displeasure caused by what one perceives as a disturbance or a nuisance.

Tune Out

The act or process of disengaging attention or interest, often used to describe ignoring or not paying attention to specific stimuli or information.

Cellular Modification Theory

Cellular modification theory suggests that learning and memory are achieved through alterations in the synaptic connections between neurons.