Which of the following statements about elasticity are true for a monopolist?
A)when marginal revenue is negative, demand is price elastic
B)marginal revenue revenue is maximized when elasticity is equal to one
C)a monopolist's demand curve always income elastic
D)when marginal revenue is positive, demand is price elastic

Question

Quizplus · Accepted Answer

When marginal revenue is positive, it indicates that the monopolist is operating in the elastic portion of the demand curve, where a decrease in price leads to an increase in total revenue.

Which of the Following Statements About Elasticity Are True for a Monopolist