A monopoly that is maximizing profits never 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 will avoid operating in the inelastic portion of the demand curve because in this range, lowering prices would decrease total revenue. In contrast, in the elastic portion, lowering prices increases total revenue and potentially profits.

A Monopoly That Is Maximizing Profits Never Operates in the ________