Say That a Monopolist Is Currently Operating on the Inelastic

question 51

Multiple Choice

Say that a monopolist is currently operating on the inelastic region of its demand curve.To maximize its profits,it should:

• A) raise its prices.
• B) lower its prices.
• C) maintain its current price.
• D) either raise or lower its prices, depending on how high its marginal cost curve is.

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