A single-price monopolist will always produce where the elasticity of demand
A) is greater than 1.
B) is smaller than 1.
C) equals 1.
D) equals infinity.

Name: A single-price monopolist will always produce where the elasticity of demand A) is greater than 1. B) is smaller than 1. C) equals 1. D) equals infinity.
Brand: Quizplus
Rating: 5.0 (34 reviews)

Question

Quizplus · Accepted Answer

A single-price monopolist will produce where the elasticity of demand is greater than 1 because this ensures that marginal revenue is positive, allowing the firm to maximize profit.

A Single-Price Monopolist Will Always Produce Where the Elasticity of Demand