To maximize profit,the monopolist produces on the ________ portion of the demand curve where ________.
A) elastic; price equals marginal cost
B) elastic; marginal revenue equals marginal cost
C) inelastic; price equals marginal revenue
D) inelastic; marginal revenue equals marginal cost

Question

Quizplus · Accepted Answer

To maximize profit, a monopolist produces where marginal revenue equals marginal cost, which occurs on the elastic portion of the demand curve. This is because, in the elastic portion, lowering the price slightly increases total revenue, allowing for profit maximization.

To Maximize Profit,the Monopolist Produces on the ________ Portion of the Demand