The Profit of a Monopolist Facing a Downward-Sloping Demand Curve

Multiple Choice

The profit of a monopolist facing a downward-sloping demand curve typically

A) rises steadily as the monopolist increases the price.
B) rises steadily as the monopolist reduces the price.
C) first rises as the monopolist reduces the price, then falls.
D) first falls as the monopolist reduces the price, then rises.
E) rises regardless of the direction of the price change.