A nondiscriminating profit-maximizing monopolist
A)will never produce in the output range where marginal revenue is positive.
B)will never produce in the output range where demand is inelastic.
C)will never produce in the output range where demand is elastic.
D)may produce where demand is either elastic or inelastic, depending on the level of production costs.

Question

Quizplus · Accepted Answer

A nondiscriminating profit-maximizing monopolist will never produce in the output range where demand is inelastic because in this range, the total revenue decreases as output increases, which is not optimal for profit maximization.

A Nondiscriminating Profit-Maximizing Monopolist