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
C
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A compensated increase in the price of a good:
A. causes the consumer to buy more of the good if the income effect is larger than the substitution effect. B. causes the consumer to buy more of the good if the income effect is smaller than the substitution effect. C. always causes the consumer to buy more of that good. D. always causes the consumer to buy less of that good.
Trade restrictions like tariffs and quotas will
What will be an ideal response?
A decrease in government spending will cause a(n):
A. increase in the quantity of real domestic output demanded. B. decrease in the quantity of real domestic output demanded. C. increase in aggregate demand. D. decrease in aggregate demand.
The USDA threshold income level was originally based on the cost of
A) housing. B) transportation. C) basic clothing. D) a nutritionally adequate food plan.