Elasticity and profit maximization at fixed costs

When a monopolist which does not price discriminate produces output where is demand is unitarily elastic, in that case the firm will: (i) never be capable to maximize profit. (ii) maximize profit only when all costs are fixed. (iii) maximize profit when all costs are variable. (iv) maximize profit when it has only explicit costs.

Please choose the right answer from above...I want your suggestion for the same.

View Complete Question

Related Questions in Microeconomics

Q : Determine prises when demand and supply

The demand for textbooks has transferred from D0 to D1 whereas supply changed from S0 to S1. Such shifts make sure that the market equilibrium: (w) price will increase. (x) price will fall.

Q : Problem on sole Proprietorships I have

I have a problem in economics on Problem on sole Proprietorships. Please help me in the following question. The form of business association with the greatest potential financial liability for its owners is the: (1) Corporation. (2) Sole proprietorshi

Q : Enterprises capability One of my

One of my friends can't discover the solution of this question. So he is not capable to complete his assignment. Give answer of this question. Are there any limits or constraints onto the enterprise’s capability to grow and change?

Q : Average standard of living in Africa

Elucidate briefly the average standard of living in Africa?

Q : Example of acquisitions of merger The

The Overpriced Petroleum Extraction Company (or OPEC) has just declared its acquisition of some small firms with facilities which will permit OPEC to process oil via the whole refining procedure, from oil field recovery via transporting and then trading the refined pe

Q : Higher value for the Gini index A

A higher value for Gini index tends to be related with: (w) decreases in the equality of the distribution of income or wealth. (x) decreases in the population’s total amount of income or wealth (y) reduced overall curvature of the Lorenz c

Q : Structure conduct performance paradigm

From about 1890 till 1970, the “structure-conduct-performance paradigm” dominated theories concerning how firms behave in various kinds of markets. The word “conduct” in this context refers to these things as: (i) decisions by

Q : Market economies of individual

In the market economies, resources are finally owned by the: (i) Corporations which dominate the economic activity. (ii) Proprietorships and partnerships. (iii) Business firms collectively. (iv) Individual house-holds. (v) Government acting as the social trustee.

Q : Share of wages problem Can someone

Can someone please help me in finding out the accurate answer from the following question. The elasticity of demand for the labor tends to rise as there are increases in the: (i) Amount of capital utilized in a production procedure. (ii) Rate of automation in industry

Q : Calculate of total variable in an area

Total variable costs can be estimate as: (1) 0bcq1. (2) 0adq2. (3) 0Peq2. (4) aPed. (5) Cannot be measured within demonstrated figure.

Discover Q & A

Leading Solution Library

Avail More Than 1446990 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1940534
Asked

3,689

Active Tutors

1446990

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment