The pure monopolist's demand curve is relatively elastic
A) in the price range where total revenue is declining.
B) at all points where the demand curve lies above the horizontal axis.
C) in the price range where marginal revenue is negative.
D) in the price range where marginal revenue is positive.

Question

Quizplus · Accepted Answer

A monopolist's demand curve is relatively elastic in the price range where marginal revenue is positive because, in this range, a decrease in price leads to an increase in total revenue, indicating elasticity.

The Pure Monopolist's Demand Curve Is Relatively Elastic