If the demand for its product is inelastic, a monopoly's A. marginal revenue is negative. B....
Question:
If the demand for its product is inelastic, a monopoly's
A. marginal revenue is negative.
B. total revenue is unchanged when the firm lowers its price.
C. total revenue increases when the firm lowers its price.
D. marginal revenue is equal to zero.
Marginal Revenue:
Marginal Revenue means the revenue of the last unit produced and sold. Profit is maximized where marginal revenue MR equals marginal cost MC. If MC exceeds marginal revenue, then the marginal unit should not be produced.
Answer and Explanation: 1
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View this answerIf the demand for its product is inelastic, a monopoly's A. marginal revenue is negative.
If the demand is inelastic, then raising the price will...
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What is a Monopoly in Economics? - Definition & Impact on Consumers
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Chapter 7 / Lesson 2
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Understand the meaning of a monopoly in economics and what it does. Also, know the characteristics of a monopoly and the different types of monopolies.
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