-Use the figure above to answer this question. Mary is the only veterinarian in a small town and rents a space for her practice. If Mary's landlord decided to charge ________ per hour in rent, Mary would ________.
A) $20 more; still earn an economic profit because she is a monopolist
B) $30 more; operate on the inelastic portion of her demand curve
C) $30 more; earn $0 economic profit
D) $10 less; raise her prices and earn a higher profit
E) $20 more; earn $0 economic profit

Question

-Use the figure above to answer this question. Mary is the only veterinarian in a small town and rents a space for her practice. If Mary's landlord decided to charge ________ per hour in rent, Mary would ________.
A) $20 more; still earn an economic profit because she is a monopolist 
B) $30 more; operate on the inelastic portion of her demand curve 
C) $30 more; earn $0 economic profit 
D) $10 less; raise her prices and earn a higher profit 
E) $20 more; earn $0 economic profit

Quizplus · Accepted Answer

If Mary's landlord charges $20 more per hour in rent, her costs would increase, potentially leading her to earn $0 economic profit, as her increased costs could offset her monopoly profits.

-Use the Figure Above to Answer This Question