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

Question

Quizplus · Accepted Answer

A profit-maximizing monopolist never produces along the inelastic portion of the demand curve because marginal revenue is negative there. Producing in this region would mean that reducing output could increase total revenue and profit.

A Profit-Maximizing Monopolist Never Produces Along the __________ Portion of the Demand