Business, 02.04.2020 02:02 tajonae04

Consider the relationship between monopoly pricing and the price elasticity of demand. if demand is inelastic, total revenue would increase when a monopolistraises its price. as a result, total cost wouldincrease . therefore, a monopolist will produce a quantity at which the demand curve is inelastic.

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Answer from: biggs113056

Explanation:

A monopolist is out for to profit-maximize price and in doing he will never set a price at which the (linear) demand curve is inelastic.

Consequently, the revenue would increase and the total costs would decrease at a lower quantity.

Hence, a monopoly firm would have higher revenue and lower costs, so that the profit will be higher.

So, the firm should keep on raising its price until profits are maximized. This happens on an elastic portion of the demand curve.

On the demand curve ,

When Marginal Revenue = Marginal Cost Profit is maximized at the output level where .

Marginal Cost is positive (MC>0), the profit-maximizing output proofs to be associated with the elastic portion of the demand curve.

Exploring the relationship between Total Revenue and Price.

As Price increases, Total Revenue increases WHEN demand is inelastic.

If Price decreases, Total Revenue increases, WHEN demand is elastic

Total Revenue is maximized when demand is unit-elastic.

Answer from: Quest

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7. customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

your welcome leave a rate and a < 3

Answer from: Quest

The answer for edgenuity is c: color

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Consider the relationship between monopoly pricing and the price elasticity of demand. if demand is...

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