For a Good That Has a Price Elasticity of Demand

question 27

Multiple Choice

For a good that has a price elasticity of demand of -1.5 and a marginal cost of $50 per unit, the profit-maximizing price should be approximately _____.

• A) $200
• B) $168
• C) $150
• D) $50
• E) $134

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Definitions:

Motor Units

A motor unit consists of a single motor neuron and all the muscle fibers it innervates, essential for muscle contraction.

All Or None

A principle stating that a neuron either fires with a full response or does not fire at all, depending on stimulus strength.

Contraction

The process in which a muscle becomes shorter and tighter, producing movement or exerting force.

Single Muscle Contraction

The process by which a muscle fiber receives a nerve impulse and momentarily contracts or shortens.