Why would a monopolist never price in the inelastic portion of the demand curve?
What will be an ideal response?
Pricing in the inelastic portion of the demand curve would result in negative marginal revenue which would reduce total revenue and profits as well.
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Based on the answer above, the price for Nike shoes_____________ and the quantity demanded for Nike shoes ____________
a. Uncertain; decreases b. Decreases; increases c. Decreases; uncertain d. Increases; uncertain
The game in the figure shown is a version of:
A. the prisoner's dilemma.
B. the first-mover advantage.
C. a sequential game.
D. a repeated game.
From 1922 to 1929, the total value of the stock market:
A. more than tripled. B. decreased by nearly 50 percent. C. decreased by nearly 90 percent. D. stayed the same.
Economics is a social science in the sense that it
a. rigorously examines human behavior. b. is not as scientific as physics. c. relies on historical data instead of mathematical data. d. relies on statistics instead of mathematics. e. All of the above are correct.