Refer to the Following Table That Gives the Demand Facing

question 37

Multiple Choice

Refer to the following table that gives the demand facing a monopolist: Demand is __________ between 65 and 70 units of output because marginal revenue in that range is ______.

• A)elastic,$50
• B)elastic,$100
• C)inelastic,negative
• D)inelastic,positive

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Definitions:

Share

A unit of ownership in a company or financial asset that represents a proportionate claim on its assets and earnings.

Partial Excludability

Characteristic of a good whereby it is difficult but not impossible to prevent people from using it, often seen in semi-public goods.

Dividend Income

Revenue received from owning shares in a company that pays out profits to its shareholders.

Taxable Income

The amount of income subject to tax, after deductions and exemptions.