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A monopoly: All things being equal, should never price its goods or services in the inelastic...

A monopoly:
All things being equal, should never price its goods or services in the inelastic portion of the demand curve.
Has an elastic demand curve
Has a perfectly inelastic demand curve
Faces a constant elasticity demand curve
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Answer #1

Option 1

All things being equal, should never price its goods or services in the inelastic portion of the demand curve.

The monopoly is a firm produces at MR=MC to maximize profit and MC can not be negative so MR is positive at the level so the demand is elastic in the range of the output, if the firm produces in-unit elastically or inelastic then the MR=0 or less than zero and that means the MC is above MR and the firm will make a negative marginal profit in the inelastic portion of the demand

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