The Hard Times Concrete Company Is a Monopolist in the Concrete

question 4

Multiple Choice

The Hard Times Concrete Company is a monopolist in the concrete market.It uses two inputs, cement and gravel, which it buys in competitive markets.The company's production function is q = c^1/2g^1/2q, where q is its output, c is the amount of cement it uses, and g is the amount of gravel it uses.If the price of cement goes up, the firm's demand for cement

• A)goes down and its demand for gravel goes up.
• B)and its demand for gravel go down.
• C)goes down and its demand for gravel may go up, down, or remain the same, depending on the demand function for concrete.
• D)may go up, down, or not change, depending on whether the cement's elasticity of demand is less than, equal to, or greater than 21.
• E)could go up or down but must move in the opposite direction from its demand for gravel.

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Definitions:

Income

Income refers to the money received by an individual or entity, typically in the form of wages, salaries, or returns from investments, over a specified period of time.

Interest Rate

The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.

Bushels

A unit of volume that is used for measuring agricultural produce, such as grain, fruit, or vegetables.

Harvest

The process of gathering ripe crops from the fields.