A Monopolist Produces at a Point Where the Price Elasticity

question 22

Multiple Choice

A monopolist produces at a point where the price elasticity of demand is -0.7 and the marginal cost is $2.If you were hired to advise this monopolist on how to increase his profits, you would find that the way to increase his profits is to

• A)increase his output.
• B)lower the price.
• C)decrease his output.
• D)produce the output level where marginal cost equals price.
• E)increase his advertising efforts.

---

Definitions:

Locus of Control

A psychological concept referring to individuals' beliefs about the extent to which outcomes of their actions are under their personal control.

General Self-Efficacy

Refers to a person's belief in their ability to perform tasks and handle challenges across a variety of different settings and situations.

High Negative Affectivity

refers to a personality characteristic involving a pervasive pattern of negative emotions and poor self-concept.

Workplace Stress

The physical and emotional response that occurs when the demands of the job do not match the capabilities, resources, or needs of the worker.