Ask a New Question

If the demand curve facing the monopolist has a constant elasticity of 2,

then what will be the monopolist markup on marginal cost?

1 answer

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.

Ask a New Question or answer this question.

Similar Questions

Consider a monopolist facing a demand curve given by P = 20 – q, where P is the market price and q is the quantity sold. The
1. 0 answers
Consider an economy with a constant nominal money supply, a constant level of real output Y = 100, and a constant real interest
1. 1 answer
If the demand function is:Qd = 1300 - 10p - p^2 1. Sketch the demand curve above. 2. Find the arc elasticity of demand for the
1. 1 answer
What is the elasticity of demand for peanut butter when the price changes from $2.00 to $0.40 as shown by this supply and demand
1. 1 answer

more similar questions