A Profit-Maximizing Monopoly with a Straight-Line Demand Will Never Produce

question 52

Multiple Choice

A profit-maximizing monopoly with a straight-line demand will never produce when demand is inelastic because

• A)price would be negative.
• B)consumers would buy nothing.
• C)revenue would be rising as cost falls.
• D)marginal revenue would be negative and could not equal marginal cost.
• E)there would be too few potential customers.

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