State true or false and justify your answer:

A monopoly should produce and sell on the elastic portion of demand.

A monopoly is an example of a market where one firm produces all the market products. The monopolistic claim firms produce goods on the elastic portion of the demand curve is true. Because a monopolist aims to maximize profit and increase their revenue, they tend to restrict the output to reduce the total cost by raising its product price. They have the power to change the prices, but the demand for the product bars the price. Moreover, a monopolist is a sole firm in the market; thus, dominance is clear; the market demand curve is the same as the normal demand curve compared to a perfectly competitive firm whose curve slopes downward.