If a Monopoly Operated in the Inelastic Range of Its

question 1

Multiple Choice

If a monopoly operated in the inelastic range of its linear demand curve,

• A) it would be operating at its profit- maximizing position.
• B) it would be operating where its AR is negative.
• C) its marginal revenue would be negative although its total revenues would be at a maximum.
• D) it could raise its total revenue by lowering its price.
• E) its marginal revenue would be negative.

---

Definitions:

Common Bile Duct

A duct in the digestive system that conveys bile from the liver and gallbladder to the duodenum.

Cystic Duct

A short duct that connects the gallbladder to the common bile duct, which then carries bile to the intestine.

Hepatic Duct

The duct that carries bile from the liver into the common bile duct, which then heads towards the gallbladder or intestine.

Pancreatic Duct

A channel in the pancreas that transports digestive enzymes and bicarbonate from the pancreas to the duodenum.