The total revenue test using the price elasticity of demand
A) explains why monopolies will only operate on the elastic portion of their demand curve.
B) explains why monopolies will only operate on the inelastic portion of their demand curves.
C) demonstrates why a monopoly can earn an economic profit in the long run.
D) determines whether a monopoly can perfectly price discriminate or not.
E) cannot be used for a price discriminating monopoly.
B
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Which of the following about demand is true?
a. The height of the demand curve for a product at a given quantity represents the marginal value derived by the consumption of that unit. b. The height of the demand curve for a product at a given quantity reflects the total value consumers derive from all units of the good consumed. c. The total area above the demand curve for a product is equal to consumer surplus. d. At every quantity, the height of the demand curve for a product represents the cost of producing that unit.
Structural unemployment results when wages are, for some reason, set above the level that brings supply and demand into equilibrium
a. True b. False Indicate whether the statement is true or false