If There Are No Fixed Costs and Marginal Cost Is

question 14

Multiple Choice

if there are no fixed costs and marginal cost is constant at $8, the price elasticity of demand at the profit-maximizing level of output is closest to

• A)-1.17.
• B)-4.70.
• C)-0.85.
• D)-2.35.
• E)-0.43.

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Definitions:

Basal Metabolic Rate

The amount of energy expended while at rest in a neutrally temperate environment, necessary to maintain the basic functions of the body.

Body Mass Index

A numerical computation that assesses an individual's body fat based on their height and weight.

Aerobic Capacity

The maximum rate at which an individual can consume oxygen during intense, all-out physical exercise, indicative of cardiovascular fitness.

Insulin

A hormone produced by the pancreas that regulates blood sugar levels by facilitating the uptake of glucose into cells.