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Would a monopolist ever operate in the in elastic portion of demand curve?
Wiki User
∙ 11y ago
yes
Wiki User
∙ 11y ago
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How does the elasticity of the monopolistic competitor's demand curve compare to that of a pure competitor or a pure monopolist?
A monopolistic competitor's demand curve is less elastic than apure competitor's which is less elastic than a pure monopolist's.
Will a monopolist charge a lower price where demand is price elastic and a higher price where demand is price inelastic?
Yes. A monopolist would tend to charge a price closer to fair market value when the demand for a good is elastic. If not demand would be affected. With a monopoly controlled inelastic good the consumer has no recourse and there for would be and the mercy of the supplier.
Is it true the demand curve of a monopolistic competitive firm is more elastic than that of a pure monopolist?
YES
A profit maximizing monopolist with a positive marginal cost of production will always?
Produce in the elastic range of the demand curve
What is the demand curve faced by a pure monopolist?
The demand curve faced by a pure monopolist is of downward sloping in shape.
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.
How does the elasticity of the monopolistic competitor's demand curve compare to that of a pure competitor or a pure monopolist?
A monopolistic competitor's demand curve is less elastic than apure competitor's which is less elastic than a pure monopolist's.
Will a monopolist charge a lower price where demand is price elastic and a higher price where demand is price inelastic?
Yes. A monopolist would tend to charge a price closer to fair market value when the demand for a good is elastic. If not demand would be affected. With a monopoly controlled inelastic good the consumer has no recourse and there for would be and the mercy of the supplier.
Is it true the demand curve of a monopolistic competitive firm is more elastic than that of a pure monopolist?
YES
A profit maximizing monopolist with a positive marginal cost of production will always?
Produce in the elastic range of the demand curve
What is the demand curve faced by a pure monopolist?
The demand curve faced by a pure monopolist is of downward sloping in shape.
Does a monopoly produce at the inelastic or elastic part of the demand curve?
A monopoly typically produces in the inelastic part of the demand curve because it has control over the quantity supplied and can set prices higher without losing too many customers. This allows the monopoly to maximize its profits by charging higher prices for its products.
When a second firm enters a monopolist's market what will the initial demand curve facing the monopolist do?
shift to the left.
The demand curve for a monopolist differs from the demand curve faced by a competitive firm?
The pure monopolist's market situation differs from that of a competitive firm in that the monopolist's demand curve is downsloping, causing the marginal-revenue curve to lie below the demand curve. Like the competitive seller, the pure monopolist will maximize profit by equating marginal revenue and marginal cost. Barriers to entry may permit a monopolist to acquire economic profit even in the long run.
The nondiscriminating pure monopolist's demand curve is the industry demand curve.?
yes
Demand and its types?
Perfectly inelastic demand, perfectly elastic demand, elastic demand, inelastic demand etc.
What will happen to total revenue if unitary elastic over a portion demand curve change upward by one percent?
What_will_happen_to_total_revenue_if_unitary_elastic_over_a_portion_demand_curve_change_upward_by_one_precent
