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A monopolist will not always produce on the inelastic portion of its demand curve?
Wiki User
∙ 12y ago
(inelastic portion is when MR = negative figure)
Yes , because the optimum point is when MR equals to MC
and there is no hell a way when MC is negative.
Other than this, when the price is at the upper proportion of monopoly demand curve, the price is always higher and the monopoly firm will earn supernormal profit.
Any answer which is reasonable will be accept.
Wiki User
∙ 12y ago
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A profit maximizing monopolist with a positive marginal cost of production will always?
Produce in the elastic range of the demand curve
Why the price elasticity of necessary goods always inelastic?
the price elasticity of necessary good is always inelastic because these goods are vital for human existence and people will have to acquire them no matter their prices in order to ensure survival, hence their inelasticity.
What supply in economics is when the supply is only one and will always be one no matter what price anyone is willing to pay?
Supply Perfectly Inelastic
Why food has inelastic demand?
Because food is anecessity people will always have to eat something in order to survive in this planet. not many substitute andperishability
Do monopolists always make a profit?
No. A monopolist must do his research and make sure that with his income after having monopolized, he will be able to pay back whatever loans or debts he has in a timely fashion with his consecutive income.
Would the firm ever operate on the elastic portion of the demand curve if MC equals 0?
Yes; indeed, a monopolist ALWAYS operates on the elastic portion.Here's a simple reason why: if demand were inelastic, raising price would yield more revenue, which would yield more profit.
A profit maximizing monopolist with a positive marginal cost of production will always?
Produce in the elastic range of the demand curve
Why would a government tax on cigarettes be an ineffective method to decrease consumption of cigarettes if demand for cigarettes is inelastic?
Because cigarettes are a inelastic item, and when something is inelastic, people are going to buy it no matter if the price changes or not. Inelastic= necessity item Necessity item= people will always buy even when the price increases
Why the price elasticity of necessary goods always inelastic?
the price elasticity of necessary good is always inelastic because these goods are vital for human existence and people will have to acquire them no matter their prices in order to ensure survival, hence their inelasticity.
Shape of graph that is a Supply Curve that is perfectly inelastic?
When you think about elasticity and inelasticity graphically it always helps me to think of that the end result will be. So I will walk you through my thought process. If supply is inelastic, then no matter the price, supply will always be the same. If price is on the y-axis and quantity is on the x-axis ( as they usually are) then: Perfectly inelastic supply will be represented by a vertical line.
What supply in economics is when the supply is only one and will always be one no matter what price anyone is willing to pay?
Supply Perfectly Inelastic
If salt is highly inelastic then why wouldn't producers of salt increase their prices?
The price of salt, which is highly inelastic in our economy, WILL NOT change due to other variables, such as one seller raising prices to increase profits or meet new costs. Because... someone else will always be there selling cheap salt. There is a lot of salt, in a lot of places. Hence, its price is inelastic.
Why food has inelastic demand?
Because food is anecessity people will always have to eat something in order to survive in this planet. not many substitute andperishability
Do monopolists always make a profit?
No. A monopolist must do his research and make sure that with his income after having monopolized, he will be able to pay back whatever loans or debts he has in a timely fashion with his consecutive income.
What is the Moon's lit portion?
The Moons lit portion is always about 50% excluding The light bounced by the Earths atmosphere
Is the rate in the portion formula is always expressed with a percent symbol?
The portion is sometimes expressed with a percent symbol. true or false
Is the rate in the portion formula always expressed with a percent symbol?
The portion is sometimes expressed with a percent symbol. true or false
