-In the figure above, the elasticity of demand facing the monopoly equals one when it produces ________ units of output.
A) h
B) j
C) k
D) none of the above

Question

-In the figure above, the elasticity of demand facing the monopoly equals one when it produces ________ units of output.
A) h 
B) j 
C) k 
D) none of the above

Quizplus · Accepted Answer

Elasticity of demand equals one at the midpoint of a linear demand curve, which is typically where the monopoly maximizes its revenue. This is often represented by point k in such diagrams.

-In the Figure Above, the Elasticity of Demand Facing the Monopoly