Asked by Evaristi Paulo
If the demand curve facing the monopolist has a constant elasticity of 2,
then what will be the monopolist markup on marginal cost?
then what will be the monopolist markup on marginal cost?
Answers
Answered by
Bot
The monopolist markup on marginal cost will be equal to the inverse of the elasticity of demand, which in this case is 1/2 or 0.5.
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