A monopolist can raise its price further above marginal cost, the more ______ its ______ is.

Name: A monopolist can raise its price further above marginal cost, the more ______ its ______ is.
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Question

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A monopolist can raise its price further above marginal cost when demand is inelastic because consumers are less sensitive to price changes, allowing the monopolist to increase prices without losing many sales.

A Monopolist Can Raise Its Price Further Above Marginal Cost