Since revenue increases with increases in price when demand is relatively inelastic, monopolists produce on the inelastic part of demand.

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Monopolists typically produce on the elastic part of the demand curve because in this region, lowering the price slightly leads to a more than proportional increase in the quantity sold, which can increase total revenue. Producing on the inelastic part would mean that price increases would lead to a less than proportional increase in revenue, which is not typically desirable for maximizing profits.

Since Revenue Increases with Increases in Price When Demand Is