Consider a Profit-Maximizing Single-Price Monopolist That Faces a Linear Demand

question 124

Multiple Choice

Consider a profit-maximizing single-price monopolist that faces a linear demand curve.The firm would not set a price at which demand is inelastic because

• A)marginal revenue is zero in that range of output.
• B)average revenue is zero in that range of output.
• C)the marginal revenue would be negative in that range of output.
• D)the average revenue would be negative in that range of output.
• E)the marginal revenue and average revenue would be equal in that range of output.

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