Where does a profit-maximizing monopolist operate?
A) where demand is elastic
B) where demand is infinitely elastic
C) where demand is inelastic
D) where demand is unit elastic

Question

Quizplus · Accepted Answer

A profit-maximizing monopolist operates where demand is elastic because in this range, lowering the price slightly leads to a more than proportional increase in quantity sold, increasing total revenue.

Where Does a Profit-Maximizing Monopolist Operate