Unique Creations Has a Monopoly Position in Magnometers

question 5

Multiple Choice

Unique Creations has a monopoly position in magnometers.If the marginal cost for a magnometer is $50 and the price elasticity for magnometers is -4,what is the optimal monopoly price? Hint: P (1 +1/E) = MC.

• A) $37.50
• B) $41.25
• C) $66.67
• D) $75.00
• E) $82.50

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Definitions:

Reactivity

The tendency of a chemical substance to undergo a chemical reaction either by itself or with other materials.

Diene

Organic compounds containing two double bonds, often involved in polymerization and other chemical reactions.

Dienophile

A compound that has an affinity for bonding with dienes (molecules with two double bonds) in a Diels-Alder reaction, typically featuring an electron-deficient double or triple bond.

Major Organic Product

The principal product formed in the highest yield during a chemical reaction involving organic compounds.