NAIMMCQ Microeconomics A monopolistic receives a subsidy from the government for every unit of output that is consume. He has constant marginal costs and the subsidy that he gets per unit of output is greater than his marginal cost of production. But to get the subsidy on a unity of output, somebody has to consume it.

A monopolistic receives a subsidy from the government for every unit of output that is consume. He has constant marginal costs and the subsidy that he gets per unit of output is greater than his marginal cost of production. But to get the subsidy on a unity of output, somebody has to consume it.

Microeconomics

A monopolistic receives a subsidy from the government for every unit of output that is consume. He has constant marginal costs and the subsidy that he gets per unit of output is greater than his marginal cost of production. But to get the subsidy on a unity of output, somebody has to consume it.

Answer: If he sells at a positive price, demand must be inelastic at that price.

NAIMMCQ

A monopolistic receives a subsidy from the government for every unit of output that is consume. He has constant marginal costs and the subsidy that he gets per unit of output is greater than his marginal cost of production. But to get the subsidy on a unity of output, somebody has to consume it.

A monopolistic receives a subsidy from the government for every unit of output that is consume. He has constant marginal costs and the subsidy that he gets per unit of output is greater than his marginal cost of production. But to get the subsidy on a unity of output, somebody has to consume it.

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