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Why will the profit maximizing monopolist never operate on the inelastic portion of its demand curve?
A profit-maximizing monopolist will never operate on the inelastic portion of its demand curve because, in that range, increasing the price leads to a decrease in total revenue. Since demand is inelastic, a price increase results in a proportionally smaller decrease in quantity demanded, causing total revenue to fall. To maximize profit, the monopolist will only produce where demand is elastic, where price increases would lead to higher total revenue. Thus, operating on the inelastic portion would be counterproductive to profit maximization.
What else can I help you with?
(a)Which of the following is true (A)A monopolist produces on the inelastic portion of its demand. (B)A monopolist always earns an economic profit. (C)The more inelastic the demand the closer marg?
(A) A monopolist produces on the inelastic portion of its demand. This is true because a monopolist maximizes profit where marginal revenue equals marginal cost, and inelastic demand allows the monopolist to raise prices without losing too many customers. However, (B) is not necessarily true, as a monopolist can incur losses in the short run, and (C) is incomplete, but typically, the more inelastic the demand, the closer marginal revenue will be to price.
Would a monopolist ever operate in the in elastic portion of demand curve?
yes
A monopolist will not always produce on the inelastic portion of its demand curve?
(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.
Three factors that make a product inelastic?
A product is considered inelastic when its demand does not significantly change with price fluctuations. Three factors that contribute to this inelasticity include: 1) Necessity: Essential goods, like basic food items or medications, tend to have inelastic demand because consumers need them regardless of price changes. 2) Lack of substitutes: When there are few or no alternatives available, consumers must continue purchasing the product even if prices rise. 3) Small portion of income: Products that constitute a minor expense in a consumer's budget, such as salt or toothpaste, are less sensitive to price changes, leading to inelastic demand.
What factors cause a good to have elastic or inelastic demand?
The elasticity of demand for a good is influenced by several factors, including the availability of substitutes, the proportion of income spent on the good, and the necessity versus luxury nature of the product. If there are close substitutes available, demand tends to be more elastic; consumers can easily switch if prices rise. Conversely, necessities with fewer substitutes are often inelastic, as consumers will continue to purchase them regardless of price changes. Additionally, goods that constitute a small portion of a consumer's budget typically have more inelastic demand.
(a)Which of the following is true (A)A monopolist produces on the inelastic portion of its demand. (B)A monopolist always earns an economic profit. (C)The more inelastic the demand the closer marg?
(A) A monopolist produces on the inelastic portion of its demand. This is true because a monopolist maximizes profit where marginal revenue equals marginal cost, and inelastic demand allows the monopolist to raise prices without losing too many customers. However, (B) is not necessarily true, as a monopolist can incur losses in the short run, and (C) is incomplete, but typically, the more inelastic the demand, the closer marginal revenue will be to price.
Would a monopolist ever operate in the in elastic portion of demand curve?
yes
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 monopolist will not always produce on the inelastic portion of its demand curve?
(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.
What is the portion of the earth in which all ecosystems operate?
temperate zone
Does a monopoly produce at the inelastic or elastic part of the demand curve?
A monopoly produces at the elastic portion of the demand curve. If producing at the inelastic portion of the deman curve, the monopoly could lower the quantity produced and raise the price to achieve more total revenue.
What is portion of our planet in which ecosystems operate is known as the what?
The portion of our planet in which ecosystems operate is known as the biosphere. It encompasses all living organisms and their interactions with the environment, including land, water, and the atmosphere. The biosphere is essential for supporting life and maintaining ecological balance.
What portion of a traffic lane does a motorcycle need to operate safely?
It depends on the local laws for what portion of a traffic lane does a motorcycle need to operate safely. Some areas require as much room as a car, while other areas allow motorcycles to go wherever they fit on the roads.
What are the best strategies for maximizing UK savings?
The best strategies for maximizing UK savings include setting a budget, regularly saving a portion of income, taking advantage of tax-free savings accounts like ISAs, investing in diverse assets, and seeking professional financial advice when needed.
What does gas operated mean for guns?
A portion of the gas generated by the burning gun powder is used to operate the action.
Three factors that make a product inelastic?
A product is considered inelastic when its demand does not significantly change with price fluctuations. Three factors that contribute to this inelasticity include: 1) Necessity: Essential goods, like basic food items or medications, tend to have inelastic demand because consumers need them regardless of price changes. 2) Lack of substitutes: When there are few or no alternatives available, consumers must continue purchasing the product even if prices rise. 3) Small portion of income: Products that constitute a minor expense in a consumer's budget, such as salt or toothpaste, are less sensitive to price changes, leading to inelastic demand.
What factors cause a good to have elastic or inelastic demand?
The elasticity of demand for a good is influenced by several factors, including the availability of substitutes, the proportion of income spent on the good, and the necessity versus luxury nature of the product. If there are close substitutes available, demand tends to be more elastic; consumers can easily switch if prices rise. Conversely, necessities with fewer substitutes are often inelastic, as consumers will continue to purchase them regardless of price changes. Additionally, goods that constitute a small portion of a consumer's budget typically have more inelastic demand.
