Which of the following is TRUE of a monopoly?
A) It can always increase its revenue by increasing the price to its customers.
B) It will always operate somewhere along the inelastic portion of the demand curve.
C) Its marginal cost curve is always downward sloping.
D) None of the above is correct.

Question

Quizplus · Accepted Answer

A monopoly cannot always increase revenue by raising prices due to the potential decrease in quantity demanded. It does not always operate on the inelastic portion of the demand curve, and its marginal cost curve is not necessarily downward sloping.

Which of the Following Is TRUE of a Monopoly