Refer to Table 10- 2, and suppose that the firm is a single- price monopolist. At the profit- maximizing level of output, the price elasticity of demand is

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For a single-price monopolist, the profit-maximizing level of output occurs where marginal revenue equals marginal cost. At this point, the price elasticity of demand is greater than one (elastic) because a monopolist will only produce in the elastic portion of the demand curve to maximize profits.

Refer to Table 10- 2, and Suppose That the Firm