If the monopolist is operating in the elastic portion of its demand curve,then an increase in price will:
A)increase total revenue.
B)decrease total revenue.
C)increase marginal revenue.
D)leave total revenue unchanged.

Question

Quizplus · Accepted Answer

If the monopolist is operating in the elastic portion of its demand curve, then an increase in price will lead to a larger decrease in quantity demanded than the increase in price, resulting in a decrease in total revenue. This is because the percentage decrease in quantity demanded is greater than the percentage increase in price, leading to a net loss of revenue.

If the Monopolist Is Operating in the Elastic Portion of Its