Assume That a Monopolist Faces a Linear Demand Curve

question 217

Multiple Choice

Assume that a monopolist faces a linear demand curve. If the firm is operating at an output level where marginal revenue is positive, the firm

• A) has maximized total revenues.
• B) could raise revenues by raising prices.
• C) can always increase profits by lowering its price.
• D) is operating on the elastic portion of its demand curve.

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