The elasticity of demand at the profit-maximizing point on


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a. The profit-maximizing price is $________ and the firm should produce _______units of output.

b. The elasticity of demand at the profit-maximizing point on demand is __________ (elastic, inelastic, unit elastic), as it must be for profit maximization to occur. Total revenue ________ (is, is not) maximized at this point on demand.

c. The maximum possible profit for this firm is $___________________ (indicate a loss with a negative sign).

d. The firm __________________ (should, should not) shut down in the short run because it would lose $____________ if it shut down.

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Business Economics: The elasticity of demand at the profit-maximizing point on
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