A monopolist that operates along the elastic range of its demand will find that
A) its total revenue increases when price decreases.
B) its total revenue decreases when price decreases.
C) its marginal revenue is negative.
D) it is more profitable to operate along the inelastic range of the demand curve.

Question

Quizplus · Accepted Answer

In the elastic range of the demand curve, a decrease in price leads to a proportionally larger increase in quantity demanded, thus increasing total revenue.

A Monopolist That Operates Along the Elastic Range of Its