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    Principles of Economics Study Set 12
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    Exam 10: Monopoly
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    A Profit-Maximizing Monopoly with a Straight-Line Demand Will Never Produce
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A Profit-Maximizing Monopoly with a Straight-Line Demand Will Never Produce

Question 52

Question 52

Multiple Choice

A profit-maximizing monopoly with a straight-line demand will never produce when demand is inelastic because


A) price would be negative.
B) consumers would buy nothing.
C) revenue would be rising as cost falls.
D) marginal revenue would be negative and could not equal marginal cost.
E) there would be too few potential customers.

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