If a Monopolist Finds Itself Operating in the Inelastic Portion

question 280

True/False

If a monopolist finds itself operating in the inelastic portion of its demand curve, then it should never lower its price because doing so would reduce its profits.

---

Definitions:

Color Sensations

Experiences or perceptions of colors by the visual system.

Cones

Retinal receptors that are concentrated near the center of the retina and that function in daylight or in well-lit conditions. Cones detect fine detail and give rise to color sensations.

Fovea

A tiny depression in the retina of the eye where visual acuity is highest due to a high concentration of cones.

Pupil Dilation

The expansion of the pupil of the eye, which can occur due to various factors, including emotional arousal, changes in light, or the influence of certain drugs.