A profit-maximizing monopolist never produces along the _____
A)elastic portion of the demand curve, because marginal revenue is positive there.
B)elastic portion of the demand curve, because marginal revenue is negative there.
C)inelastic portion of the demand curve, because marginal revenue is negative there.
D)inelastic portion of the demand curve, because marginal revenue is positive there.
E)inelastic portion of the demand curve, because marginal revenue is zero there.

Question

Quizplus · Accepted Answer

A profit-maximizing monopolist will avoid producing along the inelastic portion of the demand curve because, in this region, marginal revenue is negative. This means that selling an additional unit of the product would decrease total revenue, which is not desirable for maximizing profit.

A Profit-Maximizing Monopolist Never Produces Along the _____