The pure monopolist's demand curve is relatively elastic
A)in the price range where total revenue is declining.
B)at all points where the demand curve lies above the horizontal axis.
C)in the price range where marginal revenue is negative.
D)in the price range where marginal revenue is positive.

Question

Quizplus · Accepted Answer

A monopolist's demand curve is relatively elastic in the price range where marginal revenue is positive, as this indicates that lowering the price will increase total revenue, which is characteristic of elastic demand.

The Pure Monopolist's Demand Curve Is Relatively Elastic