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What Is the Relationship Between Price Elasticity of Demand and the Monopolist's

Question 70

Multiple Choice

What is the relationship between price elasticity of demand and the monopolist's revenue?


A) marginal revenue is maximized where demand is unit elastic.
B) average revenue is maximized where demand is unit elastic.
C) marginal revenue is negative where demand is inelastic.
D) average revenue is negative where demand is inelastic.
E) marginal revenue is lowest where demand is unit elastic.

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