A monopoly that is maximizing profits operates in the ________ portion of the demand curve.
A)unitary elastic
B)elastic
C)inelastic
D)horizontal

Question

Quizplus · Accepted Answer

A monopoly maximizing profits operates in the elastic portion of the demand curve because in this region, a decrease in price leads to a proportionally larger increase in quantity sold, thereby increasing total revenue. In the inelastic portion, a price decrease would not increase total revenue.

A Monopoly That Is Maximizing Profits Operates in the ________