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.
Economics
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Normative economics deals with ____ and positive economics deals with ____.
A. what should be; what is B. fiction; fact C. microeconomics; macroeconomics D. negative aspects; positive aspects
Economics
To eliminate the trade deficits in the late 1990s would have required, in addition to the reduction of the federal budget deficit, an increase in
A. investment spending. B. the exchange value of the dollar. C. the U.S. price level. D. the saving rate.
Economics