question archive Why wouldn't a monopolist sell their product on the part of the demand curve that is inelastic?
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Why wouldn't a monopolist sell their product on the part of the demand curve that is inelastic?
This occurs because a monopolist will produce where demand is elastic, not inelastic. The reason for this is that when demand is inelastic revenue will increase less than cost and the firm will lose profits, or not follow profit maximization rules of a monopoly.