help in homework

New User?

Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / Which of the following statements is true? a

Which of the following statements is true? a

Economics

Which of the following statements is true?

a. The higher the average cost, the lower the profit-maximizing price

b. The more elastic the demand, the higher is the desired markup

c. The higher the marginal cost, the lower the profit-maximizing price

d. The more elastic the demand, the lower is the desired markup

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

The answer is D. If the demand curve is elastic it heading towards horizontal. In profit maximization the firm restricts output to the point where marginal revenue is equal to marginal cost. When the firm increases price, if the demand is more elastic the lower the desired markup.

Sitejabber (5.0)

BBC (5.0)

Trustpilot (4.9)

Google (5.0)