A profit-maximizing monopolist will never produce at an output level where _____.
A)demand is elastic
B)it suffers economic losses in the short run
C)demand is inelastic
D)marginal revenue is zero
E)demand is perfectly elastic

Question

Quizplus · Accepted Answer

A profit-maximizing monopolist will never produce at an output level where demand is inelastic because in this range, lowering the price to sell one more unit would decrease total revenue.

A Profit-Maximizing Monopolist Will Never Produce at an Output Level