If a monopolist had no costs, its best possible price would be where demand is
A)Infinitely elastic
B)Relatively (but not perfectly) elastic
C)Unit elastic
D)Relatively (but not completely) inelastic

Question

Quizplus · Accepted Answer

A monopolist maximizes revenue where demand is unit elastic because at this point, any change in price does not affect total revenue, allowing the monopolist to capture the maximum possible revenue without costs.

If a Monopolist Had No Costs, Its Best Possible Price