FIGURE 10- 4 Suppose a Monopolist Faces the Demand Curve

FIGURE 10- 4 Suppose a monopolist faces the demand curve and cost curves shown below.

-Consider a single- price monopolist that is operating in the inelastic range of its linear demand curve.This firm

A) would be operating where its AR is negative.
B) would be operating at its profit- maximizing position.
C) would have a marginal revenue curve that is negative.
D) could raise its total revenue by lowering its price.
E) would have a marginal revenue that is negative although its total revenues would be at a maximum.