Question: Since marginal costs cannot be negative, the firm will never operate at the point on the demand curve where the price demand elasticity is equal

Since marginal costs cannot be negative, the firm will never operate at the point on the demand curve where the price demand elasticity is equal to -1. Is this true yes/no why?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Please determine whether the following statements are true, false, or uncertain. 1. If the cross-price elasticity of demand is negative, then the demand curve is not a good measure of willingness to...

_______________introduced the idea of the division of labor, which means the way in which the work required to produce a good or service is divided into a number of tasks that are performed by...

Question 20 A provincial government wants to increase the taxes on cigarettes to increase tax revenue. This tax would only be effective in raising new tax revenues if the price elasticity of demand...

Question 3(1 point) The concept of opportunity cost: Question 3 options: applies to consumers, but not to businesses applies to businesses, but not to consumers is relevant to any economic choice...

Question 1 Not yet answered Points out of 1.00 Consider the market for laptops. Suppose that, due to a microchip shortage, laptop prices increased from $1,800 to $2,000. Over the same time period,...

Q1, Game theory is important for understanding which of the following market types? Select one: a.perfectly competitive and oligopolistic markets. b.oligoplistic but not perfectly competitive...

1. Bob's electronic bike shop's production function is given by q = -5 L 3 + 20L 2 +10L. The marginal product of labor is A) MP = 10 + 40L -15L 2 B) MP = 10 + 20L -5L 2 C) MP = 10L D) MP = 10 + 20L...

Please help me understand the following exercise. especially the true or false question. Thank you 3. In the short run, a purely competitive firm should: Select one: a.continue to operate even at a...

There are 10 potential entrants into the market for tomatoes. All tomato growers are identical. They face a fixed cost of 500 if they choose to enter the market and then have a marginal cost of 10...

All jobs at Frankfurt Inc., which uses a job order costing system, go through two departments (Fabrication and Assembly). Overhead is applied to jobs based on machine hours in Fabrication and on...

A research organization has collected the following data on household size and telephone ownership for 200 U.S. households. At the 0.05 level, are the two variables independent? Based on the...

A ( qthhxx 844de sis Grades and Attenda.. & Evolve End-of Life Decision... 4 Repo Question 87 Which ethnic group may be culturally opposed to men embracing each other around the shoulders in...

Match the following descriptions to the appropriate components of the SCOR Model Prompt 1 The process of identifying the suppliers that provide the materials and services needed for the supply chain...

Explain the importance of creating an ethical culture and code of ethics.

Describe the importance of employer branding.

Explain corporate sustainability.