If a monopolist was operating in a price range where marginal revenue was negative, it would be
A) in the inelastic range of the demand for its product.
B) in the unit elastic range of the demand for its product.
C) in the elastic range of the demand for its product.
D) maximizing revenue but not profits.

Question

Quizplus · Accepted Answer

When marginal revenue is negative, it indicates that the monopolist is in the inelastic range of the demand curve, where lowering the price decreases total revenue.

If a Monopolist Was Operating in a Price Range Where