Answer to Question #49464 in Microeconomics for juan

Question #49464
Consider a profit maximizing monopolist that employs a uniform pricing strategy. If it were to produce and price at a point on the inelastic segment of its demand curve, then it could:
1
Expert's answer
2014-11-28T14:45:13-0500
If we consider a profit maximizing monopolist that employs a uniform pricing strategy and if it were to produce the output at price at a point on the inelastic segment of its demand curve, then it could raise total revenue by raising price. But if the demand is elastic, the monopolist needs to decrease price to raise total revenue.
So, the right answer is a) raise total revenue by raising price.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS