What is the price elasticity of demand at the profit-maximizing price for a company that has demand function Q = 140 - 0.2P and cost function C = 100Q? A. -1/5 B. -1 C. -4/3 D. -2
What is the price elasticity of demand at the profit-maximizing price for a company that has demand function Q = 140 - 0.2P and cost function C = 100Q? A. -1/5 B. -1 C. -4/3 D. -2
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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What is the
A. -1/5
B. -1
C. -4/3
D. -2
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Step 1
Given
Demand function faced by the profit-maximizing firm
Cost function C=100Q
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