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1 year ago

A profit-maximizing monopolist will set its price:

1 answer:

5 0

A profit-maximizing monopolist will set its price along the elastic portion of its demand curve. Thus the correct answer is option 2.

<h3 /><h3>What is monopolist?</h3>

When any market is ruled and regulated by individual identity for a particular commodity or service is referred to as a monopolist. Due to the absence of alternatives and competition, the monopolist is able to set high prices because they have sufficient market power.

The decision that will maximise profits for the monopoly is to produce at the level of output where marginal revenue equals marginal cost. This market monopolist will set their prices based demand curve proportion of elasticity.

Therefore, option 2 along the elastic portion of its demand curve is the appropriate answer.

Learn more about monopolist, here:

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2 years ago

On November 23, Elder Lift Corporation, a wholesaler of hydraulic lifts, acquired land in ex- change for 12,500 shares of $25 pa

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Answer:

Journal Entry to be recorded

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Cr. Common stock $312,500

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Explanation:

Number of Shares = 12,500 shares

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Total value of property to be recorded= 12,500 x $38 = $475,000

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2 years ago

epper Department store allocates its service department expenses to its various operating (sales) departments. The following dat

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Answer:

Pepper Department Store

The total advertising expense allocated to Department B is:

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Explanation:

a) Data and Calculations:

Expense Basis for allocation Amount

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2 years ago

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3 years ago

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Answer:

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