contestada

Which of the following is true when a profit-maximizing monopolist produces in the elastic portion of its demand curve? (A) It can increase total revenue by raising price. (B) It can decrease average total cost by reducing output. (C) Price is equal to marginal revenue. (D) Marginal revenue is less than marginal cost. (E) Marginal revenue is positive.

Respuesta :

Answer:

(E) Marginal revenue is positive

Explanation:

Parrain

When a profit-maximizing monopolist is producing at a level where its demand curve is elastic,  (A) It can increase total revenue by raising price.

How does a monopoly make profit?

A monopoly will make profit by producing at a level where it can increase total revenue by increasing its price.

This level is found at the elastic portion of the monopoly's demand curve because a change in price will affect demand.

Find out more on monopoly demand curves at https://brainly.com/question/15695659.

#SPJ2

Otras preguntas