In order to maximize its profit, a single-price monopoly always produces output in the inelastic range of the demand for its product.

Name: In order to maximize its profit, a single-price monopoly always produces output in the inelastic range of the demand for its product.
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Question

Quizplus · Accepted Answer

A single-price monopoly maximizes profit by producing output where marginal cost equals marginal revenue, which occurs in the elastic range of the demand curve, not the inelastic range.

In Order to Maximize Its Profit, a Single-Price Monopoly Always