A monopoly will usually produce
A)where its demand curve is inelastic.
B)where its demand curve is elastic.
C)where its demand curve is either elastic or inelastic.
D)only when its demand curve is perfectly inelastic.

Question

Quizplus · Accepted Answer

A monopoly will produce where its demand curve is elastic because this allows it to maximize profits by setting a price where marginal revenue equals marginal cost, which occurs in the elastic portion of the demand curve.

A Monopoly Will Usually Produce