For any monopolist with a positive marginal cost of production,its demand curve at its profit maximizing level:
A) would be elastic.
B) would be unit elastic.
C) would be inelastic.
D) could be either elastic or inelastic.

Question

Quizplus · Accepted Answer

At the profit-maximizing level, a monopolist sets marginal revenue equal to marginal cost. Since marginal revenue is positive only when demand is elastic, the demand curve must be elastic at this point.

For Any Monopolist with a Positive Marginal Cost of Production,its