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Liula [17]
3 years ago
10

If own price elasticity of demand for your market is -1.2, and your marginal cost is flat at 10, what is the optimal price for y

our monopoly firm
Business
1 answer:
scZoUnD [109]3 years ago
8 0

Answer: $60

Explanation:

The optimal price for a monopoly firm is expressed by;

Price = Marginal Cost * ( Own Price Elasticity/ (1 + Own Price Elasticity))

Price = 10 * ( -1.2 /( 1 - 1.2)

Price = 10 * (-1.2/-0.2)

Price = 10 * 6

Price = $60

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Option A, B and D are correct, It will reduce the profit of the company who is loosing the monopoly, and fewer drugs will be invented in the market and firms are loosing the monopoly, and the sunk cost will increase.

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"The objective of external auditing is to provide opinions on the reliability of the financial statements and provide opinions o
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You are considering a stock investment in one of two firms (Lots of Debt, Inc. and Lots of Equity, Inc.), both of which operate
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Answer:

Debt Ratio = Total Debt Total/ Assets

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<h2>Lots of Debt</h2>

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6 0
3 years ago
Identify the true statement in each of the three modules. Identify the true statement. Deregulation can describe removing govern
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Answer:

Deregulation can describe either removing government control of the price of a good or the removal of government control of quantities.

Explanation:

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Deregulation can involve :

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