When a monopolist increases the amount of output that it produces and sells,what happens to the price of its output
A)It may only increase if the demand is elastic.
B)It may only decreases if the demand is inelastic.
C)It decreases regardless of the elasticity of demand.
D)It increases regardless of the elasticity of demand.

Question

Quizplus · Accepted Answer

When a monopolist increases output, the price decreases due to the downward-sloping demand curve, regardless of demand elasticity.

When a Monopolist Increases the Amount of Output That It