If all of a monopolist's costs are fixed costs, it will produce where demand is unit elastic.

Name: If all of a monopolist's costs are fixed costs, it will produce where demand is unit elastic.
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When all costs are fixed, the monopolist will aim to produce the quantity where marginal revenue equals marginal cost (MR=MC), and since in the case of fixed costs, marginal cost equals zero, the monopolist will produce the quantity where MR=0 or where demand is unit elastic.

If All of a Monopolist's Costs Are Fixed Costs, It