Why is the ratio of the monopolys price to its marginal cost, p/MC, larger if the demand
Question:
Why is the ratio of the monopoly’s price to its marginal cost, p/MC, larger if the demand curve is less elastic at the optimum quantity? Can the demand curve be inelastic at that quantity?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 83% (6 reviews)
The Lerner Index or price markup is the ratio of the difference between price and marginal cos...View the full answer
Answered By
Nazrin Ziad
I am a post graduate in Zoology with specialization in Entomology.I also have a Bachelor degree in Education.I posess more than 10 years of teaching as well as tutoring experience.I have done a project on histopathological analysis on alcohol treated liver of Albino Mice.
I can deal with every field under Biology from basic to advanced level.I can also guide you for your project works related to biological subjects other than tutoring.You can also seek my help for cracking competitive exams with biology as one of the subjects.
3.30+
2+ Reviews
10+ Question Solved
Related Book For
Managerial Economics and Strategy
ISBN: 978-0321566447
1st edition
Authors: Jeffrey M. Perloff, James A. Brander
Question Posted:
Students also viewed these Economics questions
-
The coefficient of determination r 2 is the ratio of which two types of variations? What does r 2 measure? What does 1 - r 2 measure?
-
Why is the ratio scale the most powerful of the four scales.
-
The asset turnover ratio (ATR) is the ratio of a company?s revenues to the value of its assets (indicating its efficiency in deploying its assets). We should not use the standard deviation to compare...
-
What pricing system is used to price the water you use at your college or university? Does this pricing system affect your behavior about water use (length of showers, etc.)? How? Could you recommend...
-
Using the information shown in exercise 3.29, produce an income statement for the period ended 30 June 2013. In exercise 3.29 Presented below are financial statement items for Contanzos City (a sole...
-
(a) By what percentage does your rest mass increase when you climb 30 m to the top of a ten-story building? Are you aware of this increase? Explain. (b) By how many grams does the mass of a 120-g...
-
Consider the delivery time data discussed in Example 11.3. Data From Example 11.3 a. Develop a regression model using the prediction data set. b. How do the estimates of the parameters in this model...
-
Big Bull restaurant employs twenty-three employees who receive tips. During the current year, Big Bull has $410,000 in gross revenues, and its employees do not report any tip income. In what ways may...
-
Case Study Read the FedEx Office Case before you begin this assignment. For this assignment, you will identify and fully analyze a minimum of three problems that the FedEx Office representative can...
-
Denver, Inc., has sales of $14.2 million, total assets of $11.3 million, and total debt of $4.9 million. If the profit margin is 5 percent, what is net income? What is ROA? What is ROE?
-
The inverse demand function a monopoly faces is p = 10Q0.5. The firms cost curve is C(Q) = 5Q. What is the profit-maximizing solution?
-
When will a monopoly set its price equal to its marginal cost?
-
Find the volume if the vertices are (1, 3, 6), (3, 7, 12), (8, 8, 9), and (2, 2, 8).
-
Which of the following is not a category within accumulated other comprehensive income? 1. Foreign currency translation adjustments. 2. Unrealized holding gains and losses on available-for-sale...
-
Prestige Bank has recently issued pass-through security after pooling 5300 identical mortgages into the security. Each mortgage has a fixed annual interest rate of 12% paid monthly and a maturity of...
-
Suppose TX Inc. is expected to pay a $8 dividend in one year. If the dividend is expected to grow at 10% per year and the required return is 15%, what is the price?
-
The position of a weight bobbing up and down on a spring is given by s(t) = -2 cos(t-2) where s(t) is in centimeters and t is in seconds. What is the weight's acceleration at time t = 3 rounded to...
-
- Jonas Corp.'s capital structure is 60% debt and 40% equity. The company is evaluating a project involving a new OLED screen material called Duraglass. Keiko Ltd. is currently the only producer of...
-
Which actions would you take to establish a pressure of 2.00 atm in a 2.24 L cylinder containing 1.60 g O 2 (g) at 0 C? (a) Add 1.60 g O 2 ; (b) Release 0.80 g O 2 ; (c) Add 2.00 g He; (d) Add 0.60 g...
-
4. Jobe dy -Y 2 et by
-
How can emerging market economies avoid the problems of currency mismatch?
-
1. Book Pricing: Publishers versus Authors. Consider the problem of setting a price for a book. The marginal cost of production is constant at $20 per book. The publisher knows from experience that...
-
1. Book Pricing: Publishers versus Authors. Consider the problem of setting a price for a book. The marginal cost of production is constant at $20 per book. The publisher knows from experience that...
-
1. Book Pricing: Publishers versus Authors. Consider the problem of setting a price for a book. The marginal cost of production is constant at $20 per book. The publisher knows from experience that...
-
Your GST bill has arrived. You need to pay GST on $153,890. How much do you need to pay in GST? Explain.
-
Given the fact that the telecom industry is extremely competitive, is it likely that Empire will find willing benchmarking partners among it's competitors?
-
Moxie Inc., a company that produces typewriter replicas, has fixed costs of $20,000 and variable costs of $18 per unit of output. Their expected unit sales is 10,000 units. What is the unit cost of...
Study smarter with the SolutionInn App