-Answer true false for each with a brief explanation please 1. Assuming a consta

Question

-Answer true false for each with a brief explanation please

1. Assuming a constant marginal cost, a lower price elasticity of demand would call for a relatively lower mark-up ration.

2. Mark-up pricing might be more suitable for monopolies

3. Relatively high transportation costs make it easier for a firm to achieve a natural –monopoly status.

4. When there are significant economies of scale, it might be more efficient to have a larger firm operating under its full capacity than having multiple firms, each operating at its peak efficiency.

5. The higher the fixed cost the lower the break-even output quantity.

Explanation / Answer

1) true

mark -up ratio = profit / cost

2) False

For monopoly price mark-up shud be inverse to the price elasticity

3)

True

4)

true

5)

false

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