Problem 11-11 (algo)A monopolist's price is $24. At this price the absolute value of the elasticity of demand is 3. What is the monopolist's marginal cost?Instructions: Round your answer to the nearest penny (2 decimal places).24Suppose you own a firm that produces widgets and is a monopoly. The market demand is given by the equation P= 100 – 2Q,where Pis the price of gadgets and Qis the quantity of gadgets sold per week. The firm's marginal costs are given by the equationMC = 16Q. When the monopolist maximizes profits the price elasticity of demand for widgets (rounded to two decimals) isMultiple Choice1.00.1.101.38.0.72.

Usually a monopolist operate in the elastic portion of the demand curve

Problem 11-11 (algo) A monopolist's price is $24. At this price the absolute value of the elasticity of demand is 3. What is the monopolist's marginal cost? Instructions: Round your answer to the nearest penny (2 decimal places).

Problem 11-11 (algo) A monopolist's price is $24. At this price the absolute value of the elasticity of demand is 3. What is the monopolist's marginal cost? Instructions: Round your answer to the nearest penny (2 decimal places).

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Problem 11-11 (algo)
A monopolist's price is $24. At this price the absolute value of the elasticity of demand is 3. What is the monopolist's marginal cost?
Instructions: Round your answer to the nearest penny (2 decimal places).
24
Suppose you own a firm that produces widgets and is a monopoly. The market demand is given by the equation P= 100 – 2Q,
where Pis the price of gadgets and Qis the quantity of gadgets sold per week. The firm's marginal costs are given by the equation
MC = 16Q. When the monopolist maximizes profits the price elasticity of demand for widgets (rounded to two decimals) is
Multiple Choice
1.00.
1.10
1.38.
0.72.

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